Factors That Are Indicative of a Service Warranty Include All

question 59

Multiple Choice

Factors that are indicative of a service warranty include all of the following except for

• A)The warranty is legally required.
• B)The warranty's price is negotiated separately.
• C)The warranty is considered to be a separate performance obligation.
• D)Warranty coverage period is longer.

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Definitions:

Deadweight Loss

A reduction in economic effectiveness that happens when a product or service does not reach, or cannot reach, its equilibrium state.

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit.

Consumer Surplus

The bifurcation between what a consumer wishes to pay for a service or good, and what ends up being spent.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price of the good.