Which One of the Following Statements Is More of a General

question 88

Multiple Choice

Which one of the following statements is more of a general characteristic of a service organization,as compared to a manufacturing organization?

• A)Output can be inventoried.
• B)The response time is longer.
• C)There is less customer contact.
• D)The facilities tend to be smaller.

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Definitions:

Per-worker Production Function

A mathematical representation of the relationship between output per worker and the amount of capital per worker, along with technology.

Capital

Financial assets or the financial value of assets, such as cash and securities, used to fund a business or generate wealth.

Diminishing Marginal Returns

The principle that as additional units of a factor of production are added to a fixed amount of other factors, the increase in output will eventually decrease.

Quantity of Capital

The total volume of physical assets, such as machinery and buildings, used in the production of goods and services.