Economics 0455 · IGCSE · Firms and production

Firms and production — practice question

A business gives its customers a personal service. It chooses to stay labour-intensive instead of moving to production that is more capital-intensive. Which feature of remaining labour-intensive would justify this choice?

  • ACustomer satisfaction is higher.
  • BProduction costs are higher.
  • CProduction is less flexible.
  • DQuality of customer service is worse.

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