Which of the following is not an example of an external failure cost? Warranty claims Handling complaints Loss of customer goodwill Scrap and rework during production Price discounts to offset inferior quality

In Economics, Example of an external failure cost is Scrap and rework during production.

What is External failure costs?

External failure costs  can be regarded as costs that is been incurred as a result of product failures after that product have been sold to customers.

These costs can contains some cost such as;

Therefore, option C is correct.

Learn more at:

link

An example of external failure cost is:

Scrap and rework during production

Explanation:

External failure cost is the concept used in the finance, business, and management sciences to qualify the loss of a business after a product is sold. Examples involve lawsuits, legal fees, returns, etc. Now, the argument behind the answer is that warranty claims on handling are not part of the company, but the carrier and the retailer company. but scrap and rework during production is an external failure cost because after the production and selling scrap and rework during production will remain.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.