Service Products Are Often Difficult to Identify, Since They

question 45

Multiple Choice

Service products are often difficult to identify, since they

• A) can be sold in the sense of ownership transfer.
• B) are bought and consumed at the same time.
• C) are tangible elements and cannot be easily transferred.
• D) cannot be exchanged directly from producer to user.

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Definitions:

Consumption Bundle

A combination of various goods and services that an individual consumes.

Cappuccino

A popular coffee drink made with equal parts espresso, steamed milk, and frothed milk.

Optimal Consumption Bundle

The combination of goods and services that maximizes a consumer's utility, given their budget constraint and the prices of goods and services.

Utility

A measure of satisfaction, usefulness, or pleasure obtained from consuming goods and services.