Final answer:
Services cannot be 1) stored, which is different from goods that can be kept in inventories. Economic decisions involve choosing what and how to produce using scarce resources, and businesses in market economies make production decisions based on costs and scalability.
Step-by-step explanation:
Service providers must plan their resources just as manufacturers do. However, unlike finished goods, services cannot be stored. This means that services must be consumed when they are produced, as they do not hold tangible form to be kept for later consumption. In contrast, goods can be kept in inventory, sold over time, and have a physical presence that allows them to be stored.
Considering the broader economic perspective, it's essential to determine what should be produced with the economy's scarce resources. This decision involves opportunity costs, as producing one good or service may require cutting back on others, such as choosing between better education or healthcare services or the preservation of a wilderness area over alternative land uses.
Furthermore, the question of how goods and services should be produced involves choices regarding labor, production location, and use of raw materials. For instance, a manufacturer may have to choose between employing skilled workers versus many unskilled workers, or deciding whether to produce domestically or via foreign plants.
Ultimately, every purchase we make and every service we use has to be produced first, which involves utilizing various categories of resources, and in the context of a market economy, businesses decide on these production techniques and expansions based on factors like cost and scalability over short and long terms.