The Optimum Amount of Preventive Maintenance Occurs When

question 30

Multiple Choice

The optimum amount of preventive maintenance occurs when:

• A) total breakdown costs are at a minimum.
• B) total preventive maintenance costs are at a minimum.
• C) each maintenance component cost is at a minimum.
• D) total maintenance costs are at a maximum.
• E) total maintenance costs are at a minimum.

---

Definitions:

Classical Theory

An economic theory that emphasizes free markets, free trade, and the idea that markets, if left to operate without interference, will naturally regulate themselves.

Interest Rate

The cost of borrowing money or the return on saved or invested money, expressed as a percentage of the principal.

Saving and Investment

The act of setting aside income for future use and allocating it to instruments expected to generate returns over time

Nominal-Wage Rigidity

The situation where nominal wages are slow to adjust to changing economic conditions, affecting employment and economic dynamics.