Major Service Innovations Are Relatively Rare

question 24

True/False

Major service innovations are relatively rare.

---

Definitions:

Shutdown Point

The level of production and price point at which a company's revenue from goods sold is equal to the variable cost of production, making operations financially unsustainable in the short term.

Shutdown Point

The level of output and price at which a firm's total revenue is equal to its total variable costs, below which the firm will decide to cease production in the short run.

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Long-run Supply Curve

A graphical representation showing the relationship between the price level and the quantity of output that producers are willing to supply, taking into account all factors of production can be varied.