Which of the following occurs as the level of service decreases?
A) Cost of waiting time decreases, and cost of providing service decreases.
B) Cost of waiting time decreases, and cost of providing service increases.
C) Cost of waiting time increases, and cost of providing service decreases.
D) Cost of waiting time increases, and cost of providing service increases.
E) Cost of waiting time first decreases, then increases; while cost of providing service decreases.

Question

Quizplus · Accepted Answer

As the level of service decreases, the cost of providing the service decreases because fewer resources are being used. However, the cost of waiting time increases because customers have to wait longer due to the reduced level of service.

Which of the Following Occurs as the Level of Service