The Heterogeneous Nature of Services Means That ________

question 93

Multiple Choice

The heterogeneous nature of services means that ________.

• A) no two services are exactly the same
• B) they cannot be inventoried
• C) customers cannot be involved in the production of the service
• D) production and consumption of services occur simultaneously
• E) they cannot be carried in stock over long periods of time

---

Definitions:

Marginal Product

Marginal product refers to the additional output generated by employing one more unit of a specific factor of production, such as labor or capital.

Marginal Product

The increase in output resulting from a one-unit increase in the quantity of a particular input, holding all other inputs constant.

Total Product

The total output of goods or services produced by a firm or industry within a specified period.

Negative Marginal Returns

A situation where adding an additional factor of production results in lower output per unit.