Which of the Following Statements About Operations Management in the Service

question 199

Multiple Choice

Which of the following statements about operations management in the service sector is most accurate?

• A) Operations management in the service sector is all about providing the service at the lowest cost.
• B) Operations management in the service sector should focus on providing customers with a good experience.
• C) Operations management in the service sector has less flexibility than operations management in the manufacturing sector, because services are not technology driven.
• D) Operations management in the service sector has done a good job of increasing output, but a poor job of improving quality.

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Definitions:

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to participate in an exchange, leading to a market failure.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, often including preventive care, and sometimes dental and vision benefits.

Adverse Selection

A situation where buyers and sellers have different information, leading to the market being dominated by inferior products because higher quality products are squeezed out.

Free Markets

Economic systems in which the prices for goods and services are determined by the open market and consumers, without government intervention.