An Important Dimension of Quality Is How Well the Product

question 47

Multiple Choice

An important dimension of quality is how well the product

• A) meets the specific needs of the buyer.
• B) exceeds competitors' products.
• C) conforms to manufacturer's specifications.
• D) alters the marketing landscape.
• E) saves time and labor.

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Definitions:

Marginal Cost

The extra cost incurred by producing one more unit of a product or service.

Marginal Benefit

The extra value or contentment obtained when one more unit of a good or service is consumed or produced.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction.

Spillover Benefit

An advantage that results from an activity or product but benefits those who are not directly involved in its production or consumption.