Which of the Following Is True of Services and Their

question 90

Multiple Choice

Which of the following is true of services and their providers?

• A)Service providers are more capital-intensive than labor-intensive.
• B)The quality of the service experience is controlled by a service contact employee.
• C)Service experience is usually constant irrespective of the person delivering or receiving it.
• D)Services can be provided in an isolated environment,away from customers.
• E)The degree of variation of inputs and outputs is negligible for services.

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Definitions:

Utility Maximizing

The economic principle that individuals or firms seek to achieve the highest level of satisfaction or profit from their consumption or production choices.

Budget Constraint

The limit on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.

Inferior Good

A type of good for which demand decreases as the consumer's income increases, contrasting with normal goods.

Less Durable

Describes goods or products that have a shorter usable lifespan before they degrade, wear out, or become obsolete.