It Can Be Extremely Difficult for Service Providers to Accurately

question 57

Multiple Choice

It can be extremely difficult for service providers to accurately estimate the demand for a service in order to match the right supply of the service because:

• A)services cannot be customized.
• B)services are not produced at the point of consumption.
• C)of the perishability of services.
• D)of the tangibility of services.
• E)services are highly standardized.

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Definitions:

Efficient Markets Hypothesis

The theory that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market through stock picking or market timing.

Efficient Markets Hypothesis

The theory that financial markets fully reflect all available information at any given time, making it impossible to consistently achieve higher returns than the overall market.

Share Price

The current price at which a single share of a company's stock can be bought or sold in the financial markets.

Utility Function

A utility function is an economic model representing a consumer's preference ranking for various bundles of goods or services, quantifying satisfaction levels.