Question

A production method that relies on large quantities of machines and equipment and smaller quantities of labor is referred to as a:

a)variable-input-intensive method of production.
b)labor-intensive method of production.

c)capital-intensive method of production.

d)technology-intensive method of production

Answer 1

option (c) is correct.

Step-by-step explanation:

Capital-intensive method of production:

When a company largely dependent upon the capital than on labor then it is using capital intensive method in the production of certain goods.

Capital that is used in the production of goods are as follows:

(a) Machinery

(b) Equipment

(c) Building

Companies predict that capital intensive production method increases the productivity and output of the firms as compared to the labor intensive production method.