When Service Providers State That Services Are Produced and Consumed

question 112

Multiple Choice

When service providers state that services are produced and consumed at the same time, they are referring to the fact that services are:

• A)inconsistent.
• B)intangible.
• C)inseparable.
• D)standardized.
• E)perishable.

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Definitions:

Producer Surplus

The gap between the minimum amount that sellers are prepared to accept for a product or service and the higher price they actually get.

Consumer Surplus

The deviation between what consumers intend and are able to spend on a good or service compared to their final payment.

Tax

A financial charge or levy imposed by a government on individuals or entities to fund public expenditure, creating government revenue.

Quantity Sold

The total number of units of a product or service purchased by customers over a specified period.