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Why is it possible for competition among firms to force down to capital intensive production?
Wiki User
∙ 9y ago
It is possible for competition to force competitors into capital intensive production in order to compete. When a firm does this, they can gain a competitive edge over others in the industry and get more customers because their competition will have to charge more to cover the expenses.
Wiki User
∙ 9y ago
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What is an example of capital production?
Capital of goods is the resources that are available to produce the goods. An example of capital production is the ownership of a moving truck that is used for profit by a moving company. The moving truck is the capital used for the production.
What are the nature of small scale enterprise?
They are labor intensive Mostly depend on local resources They require less capital
Why is necessary for production take place?
The input of land, labor, and capital.
What are examples of capital resources?
Capital resources are any goods that are used in the production process to produce a good or service.Capital Resources:TrucksBuildingsToolsCellphonesPrintersFax MachineEaselsMarkers
What does a decline in working capital over the years indicate?
Introductory economic courses tell us that declining capital is a bad sign for economic growth. Capital equipment such as computers and manufacturing equipment, things that are usually used with labor in producing output, is a supply factor (other supply factors include human resources, natural resources, and technology). A nation's potential production (as shown on a production possibilities curve which illustrates a simplified version of the combinations of capital and consumer goods that can be produced) is determined by supply factors along with demand and efficiency factors. Outward shifts of this curve mean economic growth; the potential production has increased. Using capital as an example, if capital increases (increase in supply factor), potential production will increase, thus indicating the potential for economic growth. On the other hand, if capital decreases, potential production will decrease, thus indicating a decrease in economic growth.
Why are some organisations capital intensive and others labor intensive?
labour intensive means use of manpower in production with little of technology while capital intensive means use of technology in production of a unit of output labour intensive means use of manpower in production with little of technology while capital intensive means use of technology in production of a unit of output
What conditions are necessary for production of capital-intensive goods?
Capital-intensive products, such as cars and trucks, heavy construction equipment, and industrial machinery, are produced by nations that have a highly developed industrial base. Japan is an example
What are the features of mass production?
One of the main features of mass production is the firm being highly mechanized (capital intensive), rather than the use of manual labour (labour intensive). Specialization is also another feature of mas production. make it easier to understand
Distinguish between capital and labour intensive production?
Labour-intensive or Capital-intensive production?It is important to distinguish between capital-intensive and labour-intensive methods of production. Capital-intensive'Capital' refers to the equipment, machinery, vehicles and so on that a business uses to make its product or service.Capital-intensive processes are those that require a relatively high level of capital investment compared to the labour cost.These processes are more likely to be highly automated and to be used to produce on a large scale.Capital-intensive production is more likely to be associated with flow production (see below) but any kind of production might require expensive equipment.Capital is a long-term investment for most businesses, and the costs of financing, maintaining and depreciating this equipment represents a substantial overhead.In order to maximise efficiency, firms want their capital investment to be fully utilised (see notes on capacity utilisation).In a capital-intensive process, it can be costly and time-consuming to increase or decrease the scale of production.Labour-intensive'Labour' refers to the people required to carry out a process in a business.Labour-intensive processes are those that require a relatively high level of labour compared to capital investment.These processes are more likely to be used to produce individual or personalised products, or to produce on a small scaleThe costs of labour are: wages and other benefits, recruitment, training and so on.Some flexibility in capacity may be available by use of overtime and temporary staff, or by laying-off workers.Long-term growth depends on being able to recruit sufficient suitable staff.Labour intensive processes are more likely to be seen in Job production and in smaller-scale enterprises.
Is a feed mill capital intensive?
Owning a feed mill is a capital-intensive operation
Is it labor intensive or capital intensive in china?
Both
How has hog farming changed?
Hog production was rapidly becoming less labor-intensive and more capital-intensive, a condition that had not been problematic for corporate outfits able to bring significant resources to bear.
Why businesses are more likely to use labor intensive production rather than capital intensive production?
Assuming that both are available to do a production task, using labor allows the business to be more flexible to varying demands. An example is seasonal production such as farming. The farm owner can scale the amount of workers hired to fit the work available.
What is one capital intensive industry in the Caribbean?
one capital intensive industry in the Caribbean is the commercial bank
Labor-intensive and capital intensive?
labour is hand made meaning without machines capital is with machines
What is the differentiate between labor and capital intensive technology?
By way of an example: Digging holes can be labor or capital intensive. You can use 1000 workers with cheap shovels (labor intensive) or 1 worker with an expensive "steam shovel" (capital intensive). Some things cannot be done either way like picking strawberries (labor intensive) or manufacturing microcircuits (capital intensive).
Define capital intensive technology?
requiring a large investment in capital goods and a relatively small labor force a capital-intensive industry or plant
