Why Might Measuring Service Quality Be More Difficult Than Measuring

question 67

Essay

Why might measuring service quality be more difficult than measuring product quality?

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a balance of the market.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the equilibrium price.

Marginal Social Cost

The cost to society of producing one additional unit of a good or service, incorporating both the private costs and any external costs.

Consumer Surplus

The gap observed between the consumer's desired price for a good or service and the price that is actually paid.