The Evidence on the Potential for Input Substitution in the Service

Multiple Choice

The evidence on the potential for input substitution in the service sector suggests that:

A) there may be more opportunities for input substitution than was previously thought, especially in areas such as health care, financial services, and the even the fine arts.
B) the traditional view that the potential for input substitution is extremely limited is correct.
C) while one or two areas of the service sector may see a small amount of input substitution, most areas will see little or none.
D) input substitution will only be feasible so long as the production process requires a relatively small amount of labor to begin with.