A University Administered the SERVQUAL Survey to Its Customers as a Way

question 52

Multiple Choice

A university administered the SERVQUAL survey to its customers as a way to assess its current position in the market. On the basis of 80 responses, the following averages were computed for the reliability construct.
What is the difference for the reliability dimension?

• A) -0.2
• B) -0.025
• C) 0.025
• D) 0.2
• E) not enough data to determine the answer

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Definitions:

Average Total Cost

the total cost of production divided by the number of units produced, reflecting the average cost per unit of output.

Average Variable Cost

The total variable costs of production divided by the number of units produced, indicating the variable cost per unit.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm or production process scales up, contrary to economies of scale where costs decrease.