Attending to a Customer Involves

question 38

Multiple Choice

Attending to a customer involves:

• A) repeating what he/she says.
• B) invalidating what he/she says.
• C) changing the client's mind on an issue.
• D) engaging in high pressure selling.
• E) paying attention to him/her.

Understand the concept of logrolling and its potential effects on economic efficiency.

Understand the concepts of producer and consumer surplus.

Identify and analyze market failures.

Describe conditions for allocative efficiency in markets.

---

Definitions:

Appraisal Costs

Expenses associated with evaluating and inspecting products to ensure they meet quality and compliance standards.

Internal Failure Costs

Internal Failure Costs are expenses incurred when a product fails to meet quality standards before it is shipped to customers, including scrap, rework, and downtime.

External Failure Costs

Costs that arise when a product fails to meet quality standards after being delivered to the customer, including returns, repairs, and warranty claims.

Quality Cost Report

A document detailing the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.