Which of the Following Occurs as the Level of Service

question 6

Multiple Choice

Which of the following occurs as the level of service decreases?

• A) Cost of waiting time decreases, and cost of providing service decreases.
• B) Cost of waiting time decreases, and cost of providing service increases.
• C) Cost of waiting time increases, and cost of providing service decreases.
• D) Cost of waiting time increases, and cost of providing service increases.
• E) Cost of waiting time first decreases, then increases; while cost of providing service decreases.

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Definitions:

Consumer Surplus

The difference in the overall amount consumers are willing and able to allocate for a good or service against the actual amount paid.

English Economist

An English Economist refers to an economist from England who specializes in the study of economics, the social science concerned with the production, distribution, and consumption of goods and services.

Utility Theory

A theory in economics that assesses the usefulness or satisfaction a consumer gains from consuming goods and services.

Total Utility

The complete fulfillment experienced from the consumption of a specific amount of products or services.