Which of the Following Is an Incorrect Statement Regarding Service

question 32

Multiple Choice

Which of the following is an incorrect statement regarding service liability?

• A) Strict liability has been frequently applied to services.
• B) Most service liability cases involve services provided by professionals, such as doctors and lawyers.
• C) Along with the growth in lawsuits for defective products, there has also been an increase in the number of lawsuits brought for defective services.
• D) Lawsuits for defective services are generally brought when someone or someone's property is harmed as a result of an inadequately performed service.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales.

Short Run

A period in which at least one input, such as plant size or the number of firms in the market, is fixed and cannot be changed.

Fixed Cost

Any cost that does not depend on the firms’ level of output. These costs are incurred even if the firm is producing nothing. There are no fixed costs in the long run.

Marginal Costs

Marginal Costs involve the additional expenses incurred from the production of one extra unit of a product or service.