An organization which increases its quality can improve its profits by _____ the prices of its products due to increased reliability and _____ its operating costs due to increased productivity.
A) decreasing; reducing
B) reducing; increasing
C) increasing; increasing
D) increasing; reducing
E) discounting; increasing

Question

Quizplus · Accepted Answer

By increasing its quality, the organization can increase its prices due to increased reliability, as customers are willing to pay more for a higher quality product. At the same time, the organization can reduce its operating costs due to increased productivity, as higher quality often means less waste and fewer errors. Therefore, increasing quality can lead to both increased revenues and decreased costs, resulting in improved profits.

An Organization Which Increases Its Quality Can Improve Its Profits