Which of the Following Business Models in the Landscaping Industry

question 19

Multiple Choice

Which of the following business models in the landscaping industry is likely to scale most efficiently?

• A) a company that offers three different bundles of services at a low, medium, and high price point depending on the level of care required by the customer
• B) a company that deploys a team of both skilled and unskilled landscapers to each customer's location regardless of their needs
• C) a company that charges the same hourly rate for landscaping services no matter what the situation requires
• D) a company that allows users of its website to schedule appointments with landscapers who specialize in the exact service required

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Definitions:

Marginal Decision Rule

An economic principle which suggests that action should continue until marginal benefit equals marginal cost, optimizing resource allocation.

Downward-Sloping Demand

A representation of the relationship between the price of a good and the quantity demanded, illustrating that as price decreases, demand typically increases.

Number Of Firms

The total count of business entities operating within a specific market or industry.

Price Taker

A market participant that accepts prevailing prices as given, having no influence to alter the price of a good or service.