Economics · Oct / Nov 2022 · Paper 13 · Question 14

A firm provides a personal service to its customers. It prefers to remain labour-intensive rather than changing to more capital-intensive production. Which aspect of remaining labour-intensive would support this choice?

1. ACustomer satisfaction is higher.
2. BProduction costs are higher.
3. CProduction is less flexible.
4. DQuality of customer service is worse.

As printed in the paper