Some Services Are Time Sensitive, Meaning That a Significant Number

question 77

Multiple Choice

Some services are time sensitive, meaning that a significant number of customers desire the service around the same time. This point in time is called

• A) peak demand.
• B) preferred demand.
• C) off-peak demand.
• D) high-contact time.
• E) high intensity time.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business.

Short Run

A time period in economics during which at least one input, such as plant size, is fixed and cannot be altered.

Profit Maximization

The procedure through which a business identifies the pricing and production volume that yields the highest earnings.

Market Price

The price at which a good or service is offered in the marketplace.