Using the Abbreviations Listed Below, Indicate for Each of the Costs

question 34

Essay

Using the abbreviations listed below, indicate for each of the costs whether the cost should be classified as: $\begin{aligned} \mathrm { P } & = \text { Prevention } \\ \mathrm { D } & = \text { Detection } \\ \mathrm { I } & = \text { Internal Falure } \\ \mathrm { E } & = \text { External Failure } \\ \mathrm { N } & = \text { None of the above } \end{aligned}$
1. Inspecting products and processes
2. Verifying supplier environmental performance
3. Testing for contamination
4. Obtaining ISO 14001 certification
5. Carrying out environmental studies
6. Operating pollution control equipment
7. Cleaning up a polluted lake
8. Recycling scrap
9. Recycling products
10. Cleaning up oil spills

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Definitions:

Efficient Allocation

The optimal distribution of resources among competing uses to maximize output or welfare.

Ppf (Production Possibility Frontier)

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, when resources are fully and efficiently utilized.

Efficiently

Achieving maximum productivity with minimum wasted effort or expense.

Production Inefficiency

A situation where resources are not utilized in the best possible manner, resulting in wasted potential output.