What Is a Major Source of Information About the Causes

question 103

Multiple Choice

What is a major source of information about the causes of poor quality?

• A)Quality reports
• B)The customer
• C)Employees
• D)Managers
• E)Stock prices

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Definitions:

Diseconomies of Scale

The phenomenon where, as a firm expands, its costs start increasing per unit of output, usually due to inefficiencies and management challenges that arise with size.

Diminishing Returns

A 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 and may decrease.

Natural Monopoly

A market structure where a single provider is more efficient in supplying the entire market with a product or service, due to high fixed or startup costs.