Southwest Airlines operates a daily flight between Chicago and Phoenix using a Boeing 737, which has a capacity of 120 passengers. During the past month, the flight has averaged 112 passengers. 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

Idle production capacity refers to the situation where a service provider has more capacity than demand, resulting in unused resources, such as empty seats on a flight.

Southwest Airlines Operates a Daily Flight Between Chicago and Phoenix