Pierre's Motorized Pirogues and Mudboats is setting up an acceptance sampling plan for the special air cleaners he manufactures for his boats.His specifications,and the resulting plan,are shown on the POM for Windows output below.Pierre is a bit confused.He mistakenly thinks that acceptance sampling will reject all bad lots and accept all good lots.Explain why this will not happen. 
Definitions:
Market Price
The current price at which an asset or service can be bought or sold in a given market.
Marginal Cost Function
A mathematical representation showing how the cost of producing one additional unit of a good changes as the quantity of production varies.
Marginal Benefit
The extra pleasure or benefit gained by a person when they consume one more unit of a specific product or service.
Moral Hazard
The situation where one party is involved in a risky event beyond their control but is protected against the risk because another party bears the cost of those risks.
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