Which of the following is NOT true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector?
A) Services are typically labor-intensive.
B) Services are often difficult to evaluate for quality.
C) Services are often an intellectual task performed by professionals.
D) Services are difficult to automate.
E) Service operations are typically capital intensive.

Question

Quizplus · Accepted Answer

The statement "Service operations are typically capital intensive" is not true. In fact, service operations tend to be more labor intensive than capital intensive, which is one of the reasons why productivity may be lower in the service sector compared to the manufacturing sector.

Which of the Following Is NOT True When Explaining Why