In Which of the Following Cases Is a Service Provider

question 38

Multiple Choice

In which of the following cases is a service provider trying to increase non-peak demand?

• A) Big department stores usually hire extra staff to handle the rush during the holiday season.
• B) Chesterton College hired part-time teachers as enrollment increased significantly.
• C) AXA Bank set up automated teller machines so that its customers could avoid standing in line.
• D) An upscale restaurant has a cocktail lounge where customers can wait until a table is ready.
• E) A fine dining restaurant is promoting a breakfast service in addition to its popular lunch and dinner options.

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Definitions:

Pure Competitor

A firm in a purely competitive market that sells products identical to those of other firms, making it a price taker with no control over market price.

Pure Monopoly

A market structure where a single seller controls the entire supply of a product or service, with no close substitutes, leading to significant market power.

Profit-Maximizing Price

The price at which a company can sell its product or service to achieve the highest possible profit.

ATC

Average Total Cost, which is calculated by dividing total costs by the quantity of output produced.