Which of the Following Is a Characteristic of an Experience

question 12

Multiple Choice

Which of the following is a characteristic of an experience good?

• A)Warranty service is included in the sales price
• B)An independent evaluation certifies the product
• C)The product is heavily advertised
• D)Quality can be assessed only after the customer has used it for a while
• E)Noen of the above

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Definitions:

Per Unit Costs

The average cost incurred for producing or acquiring one unit of a product or service.

Resource Prices

Refer to the market values assigned to natural or human-made materials that are used in the production of goods and services.

Inefficient Use

Utilization of resources in a way that is not optimal or does not maximize the potential outcome or benefit.

Economies of Scale

The economic benefits that companies gain from their size of operations, usually with the expense for each produced unit going down as the production volume goes up because fixed expenses are distributed across a larger number of units.