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Asked by Bridgette Clark on May 11, 2024

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Productivity in service-related businesses has not grown as rapidly as in manufacturing businesses because service businesses are more capital intensive.

Capital Intensive

Refers to businesses or industries that require large amounts of money and resources to produce goods or services.

Service-Related

Pertaining to activities or businesses that focus on providing services, rather than producing goods, to customers or clients.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

  • Understand the distinctions between service-related and manufacturing businesses in terms of productivity and capital intensity.
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Arianne AlipioMay 12, 2024
Final Answer :
False
Explanation :
Service-related businesses often rely more on human labor and customer interaction, making it harder to achieve productivity gains through capital investment compared to manufacturing businesses, which can more easily automate processes.

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