Operations Managers Have Learned That Quality Control Is Not a Never-Ending

question 297

True/False

Operations managers have learned that quality control is not a never-ending process. Just before you add packaging to the finished product, official company inspectors do a random spot-check. All inspections have to occur at the end of a production run because only then can the inspector see the total finished product in order to determine if quality is jeopardized.

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Definitions:

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, making consumers substitute one good for another.

Normal Good

A Normal Good is a type of good for which demand increases when income increases, and vice versa, holding all other factors constant.

Income Effect

The alteration in the income of a person or an economy and its impact on the demand for a particular good or service.