Q. Classify the following types of firms as either manufacturing or service.
|a. Bicycle production
|c. Income tax preparation
|d. Application of artificial nails
|e. Glue production
|f. Child care
Explanation Intangibility refers to the nonphysical nature of services as opposed to products. Inseparability means that production and consumption are inseparable for services. Heterogeneity refers to the greater chances for variation in the performance of services than in the production of products. Perishability means that services cannot be inventoried but must be consumed when performed.