A Firm Would Be Most Likely to Employ Statistical Process

question 267

Multiple Choice

A firm would be most likely to employ statistical process control (SPC) if it wanted to

• A) simplify the quality control process by taking samples at the end of the production process rather than examining every unit of output produced.
• B) eliminate the expenses incurred by the Deming Cycle.
• C) redefine quality control on the basis of customer needs.
• D) make sure products meet quality standards all along the production process.

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Definitions:

Marginal Cost Curve

A graph showing how the cost of producing one more unit of a good varies as the quantity of production increases.

Short Run

in economics, refers to a period during which at least one factor of production is fixed, and firms can adjust only the variable factors.

TVC

Total Variable Cost, which refers to all variable expenses that change with the level of output.

Short Run

A period of time in economics during which at least one input is fixed, limiting the ability of the economy or firm to adjust.