Which statement about Table 2.15 is BEST?
A) Learning effects are not present because the time between successive customer departures is not always shorter than the preceding time.
B) Learning effects are present, but the actual percentage reduction cannot be determined.
C) Learning effects are present because in general the time between successive departures drops
D) Learning effects are present here but the actual percentage reduction cannot be determined
C
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Which of the following statements is true about minimum efficient scale of output?
A. With lesser utilization of capital equipment, the chances of a firm realizing economies of scale increases. B. A plant must avoid operating at the minimum efficient scale of output to realize all major plant-level scale economies. C. When the minimum efficient scale of production is very low relative to global demand, it will be economical to manufacture a product at a single location. D. An advantage of a low minimum efficient scale is that it allows the firm to accommodate demands for local responsiveness. E. A low minimum efficient scale increases the risk of potentially adverse fluctuations in exchange rates.
Which of the following is/are not true regarding pricing for service firms?
A) A service firm must establish a price based on the materials used to provide the service, the labor employed, an allowance for overhead, and a profit. B) Most service firms base their prices on an hourly rate (usually actual hours), but sometimes standard hours are used. C) For most service firms, labor and profit comprise the largest portion of the cost of the service. D) None of the above