Which Statement Is True

question 35

Multiple Choice

Which statement is true?

• A)Going out of business is a short run option.
• B)Operating or shutting down are long run options.
• C)Going out of business or not going out of business are long run options.

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Definitions:

Service Inventory

Intangible goods in a service operation that cannot be stored or inventoried in the traditional sense, such as available hotel rooms or hours of consulting.

Service Stockout

Occurs when a service provider cannot meet customer demand due to insufficient resources or capacity, leading to customer dissatisfaction.

Service Level

A measure of the quality of a company's service, typically in terms of meeting customer needs or the percentage of customer demands met on time.