The Intangibility Element of a Service Refers to the Fact

question 297

Multiple Choice

The intangibility element of a service refers to the fact that it

• A) has value that can only be determined by using subjective criteria.
• B) can't be held, touched, or seen before the purchase decision.
• C) requires the ability to provide the service even in times of no demand.
• D) can maintain or accumulate good will with customers.
• E) can be objectively evaluated.

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Definitions:

Goods And Services

The outputs offered in an economy for consumption, where goods are physical items and services are activities performed for others.

Socially Optimal

A condition or point at which the societal welfare is maximized, considering both efficiency and equity.

Marginal Social Cost

The total cost to society of producing an additional unit of a good, including both private costs and any externalities.

Marginal Social Benefit

The added value to the general population from the manufacture or use of one more unit of a good or service.