Service Perishability Means That ________

question 68

Multiple Choice

Service perishability means that ________.

• A)evaluation of services is subjective and it changes from customer to customer
• B)the quality of services depends on who provides them as well as when, where, and how they are provided
• C)services cannot be stored for later sale or use
• D)services cannot be seen, tasted, felt, heard, or smelled before they are bought
• E)services cannot be separated from their providers, whether the providers are people or machines

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Definitions:

Diseconomies of Scale

An economic concept where increasing production results in higher per unit costs.

Long-run Average Total Cost

The average cost per unit of output over the long term, where all inputs are considered variable, allowing firms to adjust all factors of production.

Plant Sizes

The physical capacity or scale of a manufacturing facility, which can influence production volume, efficiency, and cost.

Per-unit Cost

The cost associated with producing or acquiring one unit of a product.