The perishability of services means?
A. ?when demand is low, the unused capacity is lost forever.
B. ?when demand is low, the unused capacity can be stored.
C. ?when demand is low, the unused capacity can be recovered the next day.
D. ?when demand is low, the unused capacity must be immediately used.
E. ?when demand is low, the unused capacity should be re-directed.
Answer: A
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A generic market is one in which
A. products from different industries compete for customers by trying to satisfy the same basic need. B. a number of firms are all offering new or improved products in an effort to increase sales. C. one seller has a patent for a superior product and other competitors imitate the leader with inferior products. D. no firm can establish a competitive advantage. E. None of these answers is correct.
In reality, it is very easy for firms to estimate their demand and cost functions
Indicate whether the statement is true or false
Which of the following economic characteristics is consistent with a commercial bank?
a. Low barriers to entry. b. High levels of research and development. c. Low profit margin on lending activities. d. Low profit margin on fee-based financial services, such as merger consulting.
Arthur Enterprises had the following long-term debt: Sinking fund bonds, maturing in installments .......... $1,200,000 Industrial revenue bonds, maturing in installments .... 800,000 Subordinated bonds, maturing on a single date ......... 1,500,000 The total of the serial bonds amounted to
a. $900,000. b. $1,500,000. c. $2,000,000. d. $2,400,000.