Producer's risk rises as consumer's risk falls.

Question

Quizplus · Accepted Answer

Producer's risk refers to the risk of a manufacturer or supplier delivering a product that does not meet the required quality standard, while consumer's risk refers to the risk of a consumer purchasing a product that does not meet their expectations or requirements. As consumer risk reduces (for example, due to increased quality control measures), the producer's risk increases as they now have to ensure that their products meet higher standards in order to meet consumer demands.

Producer's Risk Rises as Consumer's Risk Falls