Service Establishments Are Exempt from Setting Quality Standards, Since Their

question 81

True/False

Service establishments are exempt from setting quality standards, since their product is intangible and thus cannot be measured.

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Definitions:

Input Prices

The costs associated with the purchase of the materials, labor, and other inputs required for the production of goods or services.

Marginal Returns

The additional output gained by employing an additional unit of a resource.

Labor

The measure of the work done by human beings in the economy, often referred to in terms of hours worked or total workforce.

Capital

Refers to the financial assets or resources that businesses use to fund their operations and grow, including cash, equipment, and buildings.