What One of the Following Is Not a Characteristic of Yield

question 27

Multiple Choice

What one of the following is not a characteristic of yield management?

• A) Capacity is relatively fixed.
• B) There is one homogeneous customer class.
• C) The service is considered a perishable inventory.
• D) Demand fluctuates yet is somewhat predictable.

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Definitions:

Purely Competitive Market

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit, leading to price taking behavior.

Marginal Cost

Marginal cost is the cost incurred by producing one additional unit of a product or service.

AVC

Average Variable Cost, which is the total variable costs (costs that change with the level of output) divided by the quantity of output produced.

Shut Down

The temporary or permanent cessation of operations, often referring to business closure due to economic events or strategic decisions.