How Much Will Internal Failure Costs Change Assuming 400,000 Units

question 11

Multiple Choice

How much will internal failure costs change assuming 400,000 units of materials are received and that the new receiving method reduces the amount of unacceptable product units in the manufacturing process by 20 percent?

• A) $10,000 increase
• B) $50,000 decrease
• C) $160,000 decrease
• D) $320,000 decrease
• E) $500,000 decrease

---

Definitions:

Monopoly

A single-seller market scenario, in which the product offered is unique and lacks any near equivalents in the marketplace.

Barriers To Entry

Barriers to entry are obstacles that make it difficult for new competitors to enter a market, which can include high startup costs, strict regulations, or strong brand loyalty among consumers.

Single-price Monopolist

Describes a monopoly that sells its product or service at a single price to all customers, without price discrimination.

Individual Willingness

Refers to the level of price or effort a person is ready to offer to acquire a specific good or service.