Comfort Corners Home Furnishings uses labor and machinery to transform wood, plastic, metal, and cloth into comfortable chairs, sofas, and love seats for the home. This process creates
A) form utility.
B) place utility.
C) use facility.
D) intangible productivity.

Question

Quizplus · Accepted Answer

Production is the creation of finished goods and services from inputs such as land, labor, capital, entrepreneurship, and knowledge. Production creates form utility, which is the value added by the creation of finished goods and services.

Comfort Corners Home Furnishings Uses Labor and Machinery to Transform