Services

question 372

Multiple Choice

Services

• A) are tangible.
• B) often have to be produced in the presence of the customer.
• C) are easy to store.
• D) are usually produced before they are sold.
• E) All of these choices are correct.

---

Definitions:

Consumer Surplus

The distinction in the collective amount consumers are disposed and financially able to spend on a product or service, and the collective amount they actually spend.

Profit-Maximizes

A strategy or behavior exhibited by firms aiming to achieve the highest possible profits by adjusting their production levels, prices, and cost structures.

Profit-Maximizing

The tactic or plan of altering production levels and pricing to attain the greatest possible profit.

Incur a Loss

To experience a negative financial result from business operations, investments, or other economic activities.