How Well a Product or Service Performs in the Marketplace

question 33

Multiple Choice

How well a product or service performs in the marketplace is called

• A) process capability.
• B) quality of conformance.
• C) quality of performance.
• D) quality of design.
• E) process control.

---

Definitions:

Economies Of Scale

Situation in which output can be doubled for less than a doubling of cost.

Increasing Returns

A situation where the addition of more units of input results in a more-than-proportional increase in output.

Competitive Market

A market structure characterized by many buyers and sellers, such that no single party can dictate the market price.

Long-Run Cost

The total cost of production when all inputs, including both fixed and variable costs, are considered fully adjustable.