Suppose Jason Owns a Small Pastry Shop

question 44

Multiple Choice

Suppose Jason owns a small pastry shop.Jason wants to maximise his profit, and thinking back to the university microeconomics class he took, he decides he needs to produce a quantity of pastries which will minimise his average total cost.Will Jason's strategy necessarily maximise profits for his pastry shop?

• A)Yes; since Jason's pastry shop is in a perfectly competitive market, the only way to maximise profit is to produce the quantity where average total cost is minimised.
• B)Not necessarily; this strategy will only maximise Jason's profit in the long run, but not in the short run.
• C)No; in order to maximise profit, Jason would never want to produce the quantity where average total cost is minimised.
• D)Not necessarily; depending on demand, Jason may maximise profit by producing a quantity other than that where average total cost is at a minimum.

Understand the concept of service gaps and strategies for mitigating them.

Appreciate the role of technology in improving service delivery and fulfilling customer expectations.

Acknowledge the significance of managing customer expectations to minimize service gaps.

Comprehend the importance of trust and confidence (assurance) in service delivery.

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Definitions:

Heimlich Maneuver

An emergency procedure to dislodge an obstruction from a person's windpipe by applying strong pressure on their abdomen.

Pet Carriers

Pet carriers are portable enclosures designed to transport pets safely and comfortably while traveling or for veterinary visits.

Feeling of Security

An emotional state characterized by the absence of fear or anxiety, often stemming from a belief in one's safety or the predictability of one's environment.

Heimlich Maneuver

An emergency procedure to help clear an obstructed airway, usually by applying pressure to the abdomen between the rib cage and navel.