Why Are Disaggregated Measures of Quality Not Always Useful in Services

question 9

Multiple Choice

Why are disaggregated measures of quality not always useful in services?

• A) Because services are tangible.
• B) Because some aspects of service can't be measured.
• C) Because measurement is less important than customer loyalty.
• D) Because disaggregated measures are complicated to use.

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Definitions:

Marginal Costs

The additional cost incurred by producing one extra unit of a product or service, crucial for understanding economic efficiency and pricing.

Variable Costs

Expenses that vary directly with the level of production or output.

Long-Run Average Total Cost

The average cost per unit of output where all inputs are considered variable, calculated over a period where firms can adjust all factors of production.

Short-Run Marginal Cost

The cost incurred by producing one additional unit of a product or service in the short run, where some factors are fixed.