Bhavin Is Looking to Purchase a Security System for His

question 42

Multiple Choice

Bhavin is looking to purchase a security system for his condominium. He lives downtown, and although he feels relatively safe there have been a few break-ins recently. He chooses Safe-n-Secure because they will install motion detectors and cameras outside, place sensors on each window, and monitor his system 24 hours a day. Bhavin finds value with Safe-n-Secure because they offer which of the following?

• A) a good
• B) a service
• C) a good and a service
• D) neither a good nor a service

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Definitions:

Marginal Revenue

The additional income that is generated by selling one more unit of a product or service.

Loss Minimization

A strategy in economics and business focused on reducing the losses incurred by a firm or individual to the lowest possible level.

Average Total Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue that comes from selling an additional unit.