Final answer:
Master Motors' higher scrap rate is an example of inefficiency in their operations.
Step-by-step explanation:
The problem described, where Master Motors has a higher scrap rate than the industry average, is an example of inefficiency in their operations. Inefficiency refers to a lack of effectiveness or the ability to produce the desired result in the most efficient manner.
Master Motors' higher scrap rate can indicate that their production processes are not optimized, leading to wasted resources and increased costs. To address this inefficiency, Master Motors may need to review and improve their manufacturing processes to reduce scrap and increase operational efficiency.