Service Productivity Can Be Increased by Hiring New Employees Who

question 8

Multiple Choice

Service productivity can be increased by hiring new employees who will work harder, by giving up some quality, or by ________.

• A) using technology more effectively
• B) outsourcing portions of the process to other firms
• C) creating more self-serve opportunities for customers
• D) reducing the number of products offered
• E) increasing the price on some of the product line

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Definitions:

Marginal Product

The additional output resulting from the use of one more unit of a factor of production.

Marginal Revenue Product Schedule

A representation that shows how the additional revenue generated changes with the addition of one more unit of a resource.

Marginal Revenue Product Curve

A graphical representation that shows the additional revenue generated by employing one more unit of a resource, such as labor.

Marginal Revenue Product Curve

A graphical representation showing the additional revenue generated by employing one more unit of a resource.