Which of the Following Is True for Services

question 85

Multiple Choice

Which of the following is true for services?

• A) All services are people-based, while goods are equipment-based.
• B) Service providers can be both for-profit or nonprofit.
• C) All service companies follow the same process to deliver their services.
• D) The client's presence is a hindrance during the service delivery process.
• E) Service providers develop similar marketing programs for personal services and business services.

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Definitions:

Marginal Revenues

The extra earnings accrued by selling an additional unit of a good or service.

Purely Competitive Firm

A company operating in a market with many buyers and sellers, where no single entity can influence the price of its product.

Total Revenues

The overall revenue a business secures from its goods or service transactions, before removing any spending.

Fixed Costs

Costs that do not vary with the level of output produced, such as rent, salaries, and insurance premiums.