Equipment-Based Services, Such as ATMs, Online Brokerage Firms, and Automated

question 7

Multiple Choice

Equipment-based services, such as ATMs, online brokerage firms, and automated car washes, do not have the marketing concern of

• A) inconsistency.
• B) intangibility.
• C) inseparability.
• D) inventory.
• E) independence.

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Definitions:

Economic Profits

The surplus gained by a firm when total revenue exceeds total costs, including both explicit and implicit costs, reflecting the financial advantage of a particular course of action.

Accounting Profits

The total revenue of a business minus explicit costs; also known as net income.

Production Costs

The total expenses incurred in the manufacturing or creation of a product or service.

Economic Profit

The difference between total revenue and total costs, including both explicit and opportunity costs, indicating true profitability.