Service Organizations Must Manage the Availability of the Offering So

question 191

Multiple Choice

Service organizations must manage the availability of the offering so that ________ and the organization's assets are used in ways that will maximize the return on investment (ROI) .

• A) marginal costs exceeds marginal revenues
• B) service encounters can identify planning gaps
• C) demand matches capacity over the duration of the demand cycle
• D) the price elasticity of demand is unitary
• E) the service experience is consistent with the sharing economy standards of the organization's industry

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Long Run

The Long Run is a period in economics during which all factors of production and costs are variable, allowing for adjustment to changing market conditions.

Fixed Amount

A specific, unchanging quantity of something.

Diminishing Returns

An economic principle that states as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot increase proportionally.