Fast Airlines Operates Five Flights Daily Between Calgary and Toronto

question 47

Multiple Choice

Fast Airlines operates five flights daily between Calgary and Toronto during the winter.One flight leaves Calgary at 12:10 a.m.The flight has a capacity of 120 passengers.In December, the airline was flying with full capacity.But in January, the flight has averaged only 24 passengers, leaving 96 seats empty.The flight requires at least 60 passengers to break even.Which unique aspect of services does this situation describe?

• A)inventory
• B)intangibility
• C)inconsistency
• D)inseparability

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Definitions:

Value Creation

The process by which goods or services are provided that offer value to customers, thereby generating benefit to the producer or provider.

Comparative Advantage

a principle of economics that states a country or entity should produce goods and services for which it has a lower opportunity cost than its trade partners.

Specialization

involves focusing on a narrow range of products or services to gain efficiency and improve competitive advantage.

Exchange

The act of giving one item in return for another, often seen in finance and trade as the swapping of goods, services, or financial instruments.