When the Service Provided Does Not Measure Up to the Firm's

question 35

Multiple Choice

When the service provided does not measure up to the firm's or to the industry's standards,it is known as ______.

• A)the service design and standards gap
• B)the service delivery performance gap
• C)the communication gap
• D)the service planning gap

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Definitions:

Marginal Cost

The added cost incurred by producing one additional unit of a product or service.

Profit-Maximizing

The process or strategy of increasing the profit of an entity to its highest possible level under prevailing circumstances.

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product regardless of the consumer's willingness or ability to pay more.

Price Discriminate

The strategy of selling the same product to different customers at different prices based on what the seller believes each customer is willing to pay.