Which of the Following Costs Result from Failure to Control

question 119

Multiple Choice

Which of the following costs result from failure to control and improve quality?

• A)prevention costs and appraisal costs.
• B)internal failure costs and external failure costs.
• C)prevention costs and internal failure costs.
• D)appraisal costs and external failure costs.

Evaluate the impact of monopoly power on efficiency in the economy.

Recognize the role of incomplete information in leading to economic inefficiencies.

Understand the economic inefficiencies associated with market power.

Analyze the peculiarities of public goods and their impact on market efficiency.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy.

Supply Curve

A graph that shows the relationship between the price of a good and the quantity of the good that producers are willing and able to sell, usually upward sloping, demonstrating that the higher the price, the more producers are willing to supply.

Burden

The negative impact or strain experienced by individuals or groups due to economic policies, environmental factors, or other societal conditions.