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State the following statements are True or False. State the reason for your answer. Each question

carries 2 marks.
1. Labour intensive production means firms hire more people than any other factor of production. It is the
value (amount) spent that is measured.
Answer:.........
Reason:.....
2. Poor quality means that a firm's prices are higher than the industry average.
Answer:.....
Reason:........

3. Quality means that a product is high-class and one of the best in its industry, such as Rolls Royce cars or
Rolex watches.
Answer:.......
Reason:...
4. The location decision is irreversible.
Answer:.
Reason:..

User Uux
by
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1 Answer

2 votes

Answer:

See below

Step-by-step explanation:

1. True

Labor refers to human efforts in production. A labor-intensive production is when the manufacturing of a product or service relies heavily on labor than the other factors of production. Labor-intensive production is mostly applied in small-scale manufacturing or customized production.

2. False

Poor quality describes a product or a service that does not meet the expected standards. Poor quality is of low quality, one that is not properly made. Poor quality refers to a product or service that is of bad quality. A Poor quality product attracts low prices that are below the industry average.

3. True

Quality means a high degree of excellence. A quality product or service implies the product meets expected standards. Quality products offer excellent service to customers. Consumption of the product gives great satisfaction to the user.

4. False

The location decision can be reversed. A location is a place or area where a business will be set-up. The location decision involves identifying the most appropriate place to establish the business. The location decision is crucial as it can be the difference between success and failure.

Businesses have always re-located from one place to another. If the location chosen is not favorable, a decision can be made to re-locate. Reversing a location decision is expensive and time-consuming.

User Blackhex
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5.8k points