Question

-Prevention Costs: costs incurred to avoid poor-quality good or service (training, preventive maintenance of equipment, improve production process or product design, work with material suppliers to ensure delivery of quality product

-Appraisal Costs: costs incurred to detect poor-quality materials, goods or services (product testing, inspections from materials through finished goods)
-Internal Failure Costs: costs incurred to correct goods or services before delivery to customers (rework products, rejected products)
-External Failure Costs: costs incurred after delivery to the customer has occurred (warranty cost, service costs, sales returns, lost sales to dissatisfied customers)

Answer 1

Economic discussions on pollution highlight the costs of abatement and sustainable practices, signalling a move away from disposable economies towards products designed for long-term use and reparability, and emphasizing the notion of social costs.

Step-by-step explanation:

The economic discussion around the costs associated with pollution and its abatement reflects a broader consideration of production practices and their impact on the environment. These considerations are indicative of a need for a paradigm shift in how goods are produced and consumed, emphasizing sustainability and long-term utility.

Pollution control and abatement measures lead to additional costs for businesses, termed abatement costs or marginal abatement costs. These costs aim to reduce the environmental impact of production practices.

The shift towards sustainable practices suggests a move away from a disposable economy. Goods are becoming designed for durability, reparability, and long-term use, which reduces the environmental costs significantly. This change is reinforced by the concept of productive efficiency, which is the state of maximizing production without being able to increase one good without the sacrifice of another.

Finally, the concept of social costs, which includes both private costs and costs incurred by third parties (such as pollution), highlights the broader impacts of production. Addressing these social costs leads firms to consider both environmental and social responsibilities within their production processes.