According to the Text, a Firm That Sells a Service

question 180

True/False

According to the text, a firm that sells a service rather than a physical good does not have a product.

---

Definitions:

Fixed Costs

Costs that remain constant regardless of a company's level of activity, including lease payments, wages, and insurance fees.

Variable Cost

A cost that grows in direct proportion to the volume of output or sales.

Fixed Costs

Regular expenses that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Capacity

The maximum amount or number that something can contain or accommodate.