Compared to a Firm Providing a Service, a Firm Producing

question 122

Multiple Choice

Compared to a firm providing a service, a firm producing a good is more likely to have many ________ quality standards, ________ product, and a location ________ from customers.

• A) subjective; tangible; far
• B) subjective; intangible; far
• C) objective; tangible; near
• D) objective; tangible; far
• E) objective; intangible; far

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Definitions:

Free Entry

Free entry is a market condition where businesses can enter and exit the market without facing significant barriers or costs.

Competitive Price-Taker

A firm or individual in a market structure that has no control over the market price and must accept the prevailing market price for its product or service.

Output

The total amount of goods or services produced by a person, machine, company, or economy.

Price

The sum of money needed to buy a product or service.