2007-01-18 15:44:50 · 13 answers · asked by Raj 1 in Social Science ➔ Economics
Both.
The service comes in to play when they deliver the electricity from their plant to your home or business.
The product is them producing the electricity. Nuclear power is produced by the companies. Natural forms of power are in a raw state. Electric companies have to convert the power to electric form. That's when it becomes a product.
2007-01-18 20:14:57 · answer #1 · answered by Jason 3 · 0⤊ 0⤋
From the business perspective, electricity is a product. That is because the method of delivery is standardized and does not vary by client. The essential characteristic of a service is that its exact nature varies by client. "To each client, a unique service". Whereas a product is bought "off the shelf" in a single configuration such as volts of electricity. Thus, electricity is a product even if it is often called a service.
2007-01-19 00:28:57 · answer #2 · answered by Kevin C 1 · 0⤊ 1⤋
There's probably some officially categorized answer, but I prefer to think of it as a product. Electricity is made at some big plant and distributed to you, just like a car or TV set is. A service usually involves close one-on-one contact with some other human being who is doing something for you -- such as serving you a beer, or ringing up your clothing purchase, or doing your taxes. Electricity is not analogous to that at all.
2007-01-19 00:09:14 · answer #3 · answered by KevinStud99 6 · 0⤊ 1⤋
Electricity is both a product and a service. First, Electricity is produced at a power plant, etc. Then it is offered to us for consumption.
2007-01-19 02:14:42 · answer #4 · answered by Terry Z 4 · 0⤊ 1⤋
It's a product, in that electricity is a measurable quantity which I consume. In fact, if I have enough solar panels on my house, my electric meter will reverse. I don't see how this is a service.
The repairman who fixes the broken lines would be providing a service.
2007-01-19 06:57:59 · answer #5 · answered by Kilroy 4 · 1⤊ 0⤋
as it stands today in the U.S it is a natural monopoly. electricity itself is a product, but it is not charged as a product
the service is where the companies get their money. so to the companies they get paid a flat fee for the service, and the rest is just the electricity cost (no profit gained there)
thats why you see so much saving energy commercials, because it does not matter to them how much money you use, they get the same amount of money either way
2007-01-19 01:01:30 · answer #6 · answered by Kev C 4 · 0⤊ 1⤋
It is both product as well as service as when we install it in our home, It's a product and after that it becomes service...
2007-01-22 22:29:14 · answer #7 · answered by Prasun Saurav 3 · 0⤊ 0⤋
That's a tough one. I don't know what it officially is, but I want to say it's a service, because you can't have a quantity of electricity and try to resell it, and also because my energy bill has a monthly "service charge" tacked on whether or not I actually use electricity.
2007-01-18 23:53:22 · answer #8 · answered by Anonymous · 0⤊ 1⤋
electricity is a product, delivering it to your home is a service....
2007-01-19 01:53:28 · answer #9 · answered by zdonz 3 · 1⤊ 0⤋
Both. It is produced at the power plant and it is a service by providing us with electricty
2007-01-18 23:51:51 · answer #10 · answered by da_hammerhead 6 · 1⤊ 0⤋