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 less capital intensive than manufacturing operations, which rely heavily on machinery and equipment. The other statements are true and contribute to why productivity tends to be lower in the service sector compared to manufacturing.

Which of the Following Is Not True When Explaining Why