Because Many Services Depend on the People Who Provide Them

question 122

Multiple Choice

Because many services depend on the people who provide them, the quality of them is often

• A) inseparable.
• B) inconsistent.
• C) inventoried.
• D) tied to a product.
• E) independent of the features provided.

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Definitions:

Total Surplus

The sum of consumer and producer surplus, representing the total benefit to society from the production and consumption of goods and services.

Consumer Surplus

The contrast between what consumers can and will pay for a good or service and their actual expenditure on it.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the amount they actually receive (market price).

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from a market transaction.