Why Do the Products of Service Providers Tend to Be

question 76

Multiple Choice

Why do the products of service providers tend to be more customized than those of manufacturers?

• A) Differing customers have differing needs
• B) Because all customers are the same
• C) Technological innovations have reduced variability
• D) There is more capital required in service provision
• E) It is easy to measure productivity

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Definitions:

Final Goods

Products that have completed the production process and are ready for sale to the end consumer, not to be further processed or resold.

Macroeconomics

Macroeconomics is the branch of economics that examines the behavior and performance of an economy as a whole, focusing on aggregate outcomes such as economic growth, inflation, and unemployment.

Expenditure

The amount of money spent by an individual, organization, or government on goods and services.

GDP

GDP, or Gross Domestic Product, measures a country's economic output in terms of the total value of all goods and services produced within its borders in a specific time period.