An Operating Characteristic (OC) Curve Is a Graph That Measures

question 10

Multiple Choice

An operating characteristic (OC) curve is a graph that measures

• A) the acceptable proportion of defects in a lot to the consumer.
• B) the probability of accepting a lot for different quality levels with a specific sampling plan.
• C) the probability of accepting a lot in which the fraction of defectives exceeds the lot tolerance percent defective.
• D) the maximum number of defective items a consumer will accept in a lot.

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Definitions:

Market Price

The current rate for transactions involving the purchase or sale of assets or services.

Demand Conditions

The characteristics and preferences of consumers that influence their desire and ability to purchase goods and services.

Profit Maximization

The process by which a firm determines the price and output level that generates the maximum profit.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.