An Example of a Service Business/organization That Has a High

question 25

Multiple Choice

An example of a service business/organization that has a high degree of customer contact,high customization,and a high degree of labor intensity is:

• A)Retailing
• B)Hotels
• C)Law practice
• D)Schools

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Definitions:

Marginal Cost

The increase in total production costs that comes from making one additional unit of a product.

Demand Function

A mathematical representation that describes the relationship between the quantity of a good demanded and its price, along with other determinants.

Cournot Equilibrium

A condition in a duopoly market where each firm chooses the quantity to produce to maximize its own profit, assuming the other's output is fixed.

Marginal Cost

An additional cost incurred by producing one more unit of a product or service, a key concept in economics for decision-making.