Services Are Intangible and Perishable

question 42

True/False

Services are intangible and perishable.

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Definitions:

Identical Good

A product that is uniform in quality and features across different producers, making it indistinguishable between sources.

Marginal Cost

The charges incurred for the production of an additional unit of a good or service.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved due to market inefficiencies.

Consumer Surplus

The difference in planned versus actual spending by consumers on a good or service.