Which of the Following Is an Example of Internal Failure

question 41

Multiple Choice

Which of the following is an example of internal failure costs?

• A)Warranty repairs
• B)Reinspection / retesting
• C)machine inspection
• D)Inspection of incoming materials

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Definitions:

Natural Monopolist

A natural monopolist is a single supplier in a market that can produce the total quantity of a good or service demanded at a lower cost than if there were multiple suppliers, due to high fixed costs and economies of scale.

Price-Regulated

A market condition where the government sets the maximum or minimum prices for certain goods or services to protect consumer interests or ensure affordability.

Marginal Cost

The extra expense associated with the creation of an additional unit of a product or service.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable, leading to a mismatch in supply and demand.