Southwest Airlines operates five flights daily between Chicago and Phoenix during the winter.One flight leaves Phoenix at 12:10 p.m.The plane,a Boeing 737,has a capacity of 120 passengers.During the past month,the flight has averaged only 24 passengers,a load factor of 20 percent.Once the plane takes off,the empty seats generate no revenue for the airline for that flight.What unique aspect of services does this situation describe?
A)incongruity
B)intangibility
C)inconsistency
D)inseparability
E)idle production capacity

Question

Quizplus · Accepted Answer

The situation describes idle production capacity, which refers to the unused capacity of a service provider when demand is low. In this case, the empty seats on the plane represent idle production capacity, as they generate no revenue for the airline.

Southwest Airlines Operates Five Flights Daily Between Chicago and Phoenix