Andrea Lives in Southern Mississippi Where Winters Are Normally Fairly

question 324

Multiple Choice

Andrea lives in southern Mississippi where winters are normally fairly mild. Last January, during an unusually cold spell, the water pipes in her house froze and burst. She looked online to find a plumber who was able to come out and repair the pipes the same day. Prior to the frozen pipes, the plumber's services represented a(n)

• A) unsought service.
• B) industrial service.
• C) specialty service.
• D) convenience service.

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Definitions:

Profit-Maximizing Output

This term refers to the level of production at which a business achieves the greatest profit, where marginal cost equals marginal revenue.

Market Price

The current price at which a good or service can be bought or sold in a given market, determined by supply and demand.

Units

Measurements or quantities of a product or service.

Short-Run Costs

Costs that vary with the level of output in the short term, where at least one factor of production is fixed.