Services Have Four Unique Characteristics That Distinguish Them from Goods

question 54

Essay

Services have four unique characteristics that distinguish them from goods.Name and briefly define each of these four characteristics.Use the example of an airline to help describe each of the four characteristics.

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Definitions:

Property Resources

Assets or materials owned by individuals or entities, including land, buildings, and intellectual property, used in the production of goods and services.

Labor

The human effort, either physical or mental, used in the production of goods and services.

Curves

In economics, curves are graphical representations that show the relationship between two variables, demonstrating how one variable changes in response to the other.

ATC

Average Total Cost; the sum of all production costs divided by the quantity of output produced, representing the cost per unit.