Paramount Canada's Wonderland,an Amusement Park in Ontario,offers Reduced Rates on Weekdays

question 12

Multiple Choice

Paramount Canada's Wonderland,an amusement park in Ontario,offers reduced rates on weekdays and higher prices for those who want to attend on weekends.It also offers lower prices for patrons who enter the park after 4 p.m.
-Refer to Paramount Canada's Wonderland.This is a way to contend with which service characteristic?

• A)variability
• B)perishability
• C)intangibility
• D)inseparability

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Definitions:

Cost-output Elasticity

Cost-output elasticity measures the responsiveness of the cost of producing a good to a change in the output level, indicating how costs change as production scales.

Marginal Cost

The increase in expenditure resulting from the production of an additional unit of a good or service.

Short-run Cost Function

The relationship between the cost of production and the level of output when at least one input is fixed in the short term.

Long-run Cost Function

A relationship that shows the lowest possible cost at which a firm can produce any given level of output when all inputs, including capital, are variable.