Which of the Following Is Considered a Service

question 267

Multiple Choice

Which of the following is considered a service?

• A)Selling groceries
• B)Managing a team
• C)Cutting hair
• D)All of the above

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Definitions:

Profit-Maximizing

Profit-maximizing is the process by which a firm determines the price and output level that returns the greatest profit.

Marginal Cost

The surplus cost involved in the production of an extra unit of a product or service.

Average Revenue

Average revenue is the amount of income generated per unit of goods or services sold, calculated by dividing the total revenue by the number of units sold.

MC < MR

A condition in economic theory indicating that to maximize profit, a firm should produce more units as long as the marginal cost (MC) of producing an extra unit is less than the marginal revenue (MR) gained by selling it.