Quality Is a Concept That Can Be Applied to Manufacturing

question 24

True/False

Quality is a concept that can be applied to manufacturing but not to service organizations.

---

Definitions:

Nonpayers

Individuals who benefit from a good or service without contributing to its cost, often associated with public goods.

Nonrival in Consumption

A characteristic of some goods or services where one person's consumption does not reduce availability for others.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, a key concept used in decision-making and pricing strategies.

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not reduce availability to others.