When Is the Ideal Time to Measure System Performance to Form

question 24

Multiple Choice

When is the ideal time to measure system performance to form a baseline?

• A)before the system is put into production
• B)under normal operating loads
• C)on weekends, when there is little use
• D)after a series of complaints that the system is performing poorly

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Definitions:

Opportunity Cost

The cost of what is forgone in order to pursue a certain action or decision.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's or industry's output expands.

Factor Suitability

A principle in economics that factors of production such as land, labor, and capital are more productive when appropriately matched with their specific uses or industries.

Law of Diminishing Returns

The Law of Diminishing Returns is an economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.