Compare and Contrast Perishability and Intangibility in an Automobile Oil

question 103

Essay

Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured above the supply curve.

Market Price

The existing price point at which an asset or service is traded in a designated market area.

Market

A system through which buyers and sellers interact to trade goods, services, or resources.

Law Of Supply

The principle that, all else equal, an increase in the price of a good will result in an increase in the quantity supplied.