Services Frequently Use Differential Pricing in an Attempt to Synchronize

question 102

Multiple Choice

Services frequently use differential pricing in an attempt to synchronize supply and demand.Hotels frequented by business travelers often offer discounts for weekend bookings.Cinemas have lower prices for matinee shows.This is a way to contend with the service characteristic of:

• A) variability
• B) perishability
• C) intangibility
• D) inseparability
• E) simultaneous production and consumption

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Definitions:

Recourse Liabilities

Liabilities for which an individual or entity is personally liable, meaning creditors can pursue the individual's assets if the liability is not settled.

Partnership Interest

An ownership share in a partnership, representing the holder's proportionate rights and obligations in the partnership's profits, losses, and capital.

Self-Employment Income

Income generated from business or trade activities where there is no employer-employee relationship, requiring the payer to file taxes independently.

Ordinary Income

Income earned from providing services, including wages, salaries, tips, and commissions, as well as income from investments that are not considered capital gains.