If at the current level of product- specific service, consumers' value at $60 and the cost of retailers to provide the services is $60, which of the following is true?

Question

Quizplus · Accepted Answer

The cost of providing the services is equal to the value the consumers place on them, indicating that the retailer is already providing the profit-maximizing amount of product-specific services. Therefore, no increase or decrease in the level of services is necessary to maximize profit.

If at the Current Level of Product- Specific Service, Consumers