Which of the Following Statements Is NOT True of Standardization

question 66

Multiple Choice

Which of the following statements is NOT true of standardization?

• A)Standardization is used as the basis for custom-made machinery.
• B)The availability of standardized parts makes possible the replacement of defective and worn-out components.
• C)Standardized parts can reduce the cost of repairs.
• D)Standardized parts can be produced in quantity and assembled later.

Understand the concept and implications of the experience curve in business strategy.

Identify factors that influence the experience curve.

Recognize the relationship between unit costs, output, and experience curve effects.

Distinguish between elements that affect and those that are less likely to affect the experience curve.

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Definitions:

Pure Private Good

A type of good that is both excludable and rival in consumption, meaning access to the good can be limited, and one person's use of the good diminishes its availability for others.

Pure Public Good

A pure public good is characterized by non-excludability and non-rivalry, meaning one person's consumption does not reduce availability for others and no one can be prevented from consuming it.

Single Peaked

Refers to a preference or utility pattern where an individual's satisfaction increases up to a certain point, after which it starts to decrease, creating a peak at the optimum point.

Public Goods

Goods that are characterized by being non-excludable and non-rivalrous, meaning that no one can be excluded from their use and one person's use does not diminish another's.