A Form of Business That Transforms Resources into an Intangible

question 5

Multiple Choice

A form of business that transforms resources into an intangible output and creates time or place utility for its customers is called a(n)

• A) manufacturing organisation.
• B) biotechnology firm.
• C) information technology firm.
• D) service organisation.
• E) hybrid organisation.

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Definitions:

Utility Function

A mathematical representation of how different combinations of goods or services provide levels of satisfaction or utility to an individual.

Initial Endowment

The initial allocation or distribution of resources, goods, or wealth among individuals or entities at the start of an economic experiment or model.

Apples

A type of fruit commonly consumed fresh, cooked, or as juice, recognized for its sweet or tart flavor.

Pareto Optimal Allocation

A condition of resource distribution in which no one person can be made better off without causing detriment to at least another person.