Which of the Following Statements Is Correct

question 34

Multiple Choice

Which of the following statements is correct?

• A)From the perspective of a consumer,quality refers to the value gained by buying a product or service at the lowest possible price.
• B)From the perspective of a producer,quality refers to the value gained by arranging for the transportation and warehousing of a product at the lowest possible price.
• C)From the perspective of a producer,quality refers to the compliance of the product with applicable government regulations.
• D)From the perspective of a consumer,quality refers to the compliance of the product with applicable ISO requirements.

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Definitions:

Diminishing Marginal Returns

A principle in economics that indicates a decreasing level of incremental output for each additional unit of input, after a certain point.

Total Product

The aggregate quantity of output produced by an economic unit from a given set of inputs during a specific period of time.

Variable Cost

Costs that change in direct proportion to changes in a firm’s level of production.