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Services Cannot Be Stored or Inventoried

question 133

Essay

Services cannot be stored or inventoried. Attempts to regulate the "services" on the supply side-to increase the service providers when needed include such strategies as part-time workers. What are some other ways a university or college can "shift" supply for its services?


Definitions:

Market Rate

The prevailing rate of interest available in the marketplace for securities of similar risk and maturity.

Face Value

The nominal value printed on a financial instrument like a bond or stock certificate, not necessarily its current market value.

Effective Interest Rate

The actual cost of borrowing or the actual yield on savings, taking into account the compounding of interest over time.

Market Interest Rate

The prevailing rate of interest that is available on investments, influencing the cost of borrowing and lending money.

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