When Ruth Arrived at the Cedartown Spa, She Was Given

question 26

Multiple Choice

When Ruth arrived at the Cedartown Spa, she was given a membership card and access to the entire health club's facility. She still enjoys using the exercise equipment at the spa and participating in its exercise classes even though she hasn't lost any weight since she joined. Which of the following statements about the relationship of Ruth and her club is true?

• A) The card gives Ruth tangible proof that she belongs there and shows that the service is being produced and consumed each time she uses it to get in to the exercise room.
• B) Ruth will stop going to the spa because it has not provided her with any tangible evidence of its service.
• C) The services the spa provides to Ruth are an example of purely intangible services.
• D) Weight loss is the intangible evidence of services being provided by the spa.

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Definitions:

Firm's Output

The total quantity of goods or services produced by a company within a specific time period.

Lowest Price

The minimum cost at which a good or service is offered in the market, representing the least amount a seller is willing to accept.

Long Run

refers to a period of time in which all factors of production and costs can be fully adjusted, including all forms of investment.

Short Run

A timeframe in economic terms where firms can adjust production levels only by changing variable inputs, with fixed inputs remaining constant.