A Company Produces a Product Consisting of Two Components Arranged

question 51

Multiple Choice

A company produces a product consisting of two components arranged as follows:

If both components must function for the product to function, then the product's overall reliability is

• A) 0.950.
• B) 0.940.
• C) 0.930.
• D) 0.884.

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Definitions:

Externality

An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer.

Market Exchange

The process through which goods, services, or assets are traded between buyers and sellers at a determined price.

Negative Externalities

Unintended and unfavourable outcomes of an activity or transaction that affect third-party stakeholders who did not choose to be involved in that activity.

Positive Externalities

Benefits experienced by a third party not directly involved in the production or consumption of a good or service.