Question
A customer purchases a haircut and a bottle of shampoo from a salon.
How do these purchases illustrate the difference between goods and services?
The haircut is a good because it involves physical tools.
The haircut is a service consumed during production; the shampoo is a tangible good consumed over time.
The shampoo is a service because it improves appearance.
Both are services because they are consumed immediately.
How do these purchases illustrate the difference between goods and services?
The haircut is a good because it involves physical tools.
The haircut is a service consumed during production; the shampoo is a tangible good consumed over time.
The shampoo is a service because it improves appearance.
Both are services because they are consumed immediately.
Answers
GPT-4o mini
The correct statement is:
**The haircut is a service consumed during production; the shampoo is a tangible good consumed over time.**
This illustration highlights the fundamental difference between goods and services. The haircut represents a service because it involves activities performed by a stylist that provide value and is consumed at the time it is delivered. In contrast, the shampoo is a tangible good that can be physically possessed and used over time, allowing for continued value after the initial purchase.
**The haircut is a service consumed during production; the shampoo is a tangible good consumed over time.**
This illustration highlights the fundamental difference between goods and services. The haircut represents a service because it involves activities performed by a stylist that provide value and is consumed at the time it is delivered. In contrast, the shampoo is a tangible good that can be physically possessed and used over time, allowing for continued value after the initial purchase.