Which of the Following Is a Similarity Between Goods and Services

question 28

Multiple Choice

Which of the following is a similarity between goods and services

• A) Both can be standardized for the mass market or customized to individual needs.
• B) Both use physical inventory as a buffer for fluctuations in demand.
• C) Both require customers to participate extensively in the creation and delivery processes.
• D) Both can be protected by patents owing to their tangible nature.

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Definitions:

Substitution Effect

The change in demand for a good or service that occurs when its price increases or decreases, leading consumers to substitute it with other goods or services that are relatively more or less expensive.

Output Effect

The impact on the total production of goods and services in an economy resulting from changes in demand, supply, technology, or factors of production.

Factors of Production

The basic inputs used to produce goods and services, including land, labor, capital, and entrepreneurship.

Complementary Resource

A good or service that is used together with another good or service to provide a benefit or function.