A Useful Way to Distinguish Between Goods and Services Is

question 41

Multiple Choice

A useful way to distinguish between goods and services is to place them on a continuum from ____________ to ____________.

• A)practical; impractical
• B)tangible-dominant; intangible-dominant
• C)low; high
• D)reliable; unreliable
• E)prepared; unprepared

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Definitions:

Cost Behaviour

The way in which a cost reacts or changes when there is a change in the level of business activity.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Economic Profit-Maximising

The point at which a firm achieves the highest profit possible given its production costs and market conditions.