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Switching from labour -intensive to capital-intensive involves risk on the business. So the business should make sure that it's the most suitable method that will reduce the cost on the business or increase sales. There are several factors that should be put into account: first the business should ensure that enough capital is available to pay for the fix cost, as the machinery will require a suitable region to be placed it .As well as finance will be needed for the purchase of the equipments required to carry out the production, which is most likely to be very expensive. The maintenance of the machinery will also cost the business, especially when it has to be done between each while and another to ensure that the best quality of bricks is being produced .and if one or more of the machinery broke then the production method will be stopped and this might lead to dissatisfaction from the consumers.
In capital- intensive some skills will be required in order for the workers to be able to handle the use of the new machinery, so this will require training costs. As well as some experts engineers and computer programmers might be needed to monitor and adjust the performance of the capital plant. Another risk is involved when adapting to the technological change as the business should follow all the updates in the technological change in order to stay competitive and get the maximum market share possible.
After all the business should calculate and find the best and most effective method of production before switching.
Wiki User
∙ 13y ago
Wiki User
∙ 9y agoCapital-intensive methods of production have the advantage of limiting competition. Those who are first to market in this type of production have an advantage. The barriers to entry of high and can create a secure market base.
Anonymous
*Reduces human error
*Quality can be standardized
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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 is the scope of managerial economics in the field of engineering?
costs:- technology has multi-dimensional impact on costs, one hand technology determines what combination of various factor is to be used e.g capital -intensive technology or labor intensive technology
Technology that is characterized by high initial cost and low operating costs is termed?
capital-intensive.
Is it labor intensive or capital intensive in china?
Both
What is one capital intensive industry in the Caribbean?
one capital intensive industry in the Caribbean is the commercial bank
Define capital intensive technology?
requiring a large investment in capital goods and a relatively small labor force a capital-intensive industry or plant
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 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).
What is the scope of managerial economics in the field of engineering?
costs:- technology has multi-dimensional impact on costs, one hand technology determines what combination of various factor is to be used e.g capital -intensive technology or labor intensive technology
What kind of technology is characterized by low initial costs and high operating costs?
Capital-intensive
Technology that is characterized by high initial cost and low operating costs is termed?
capital-intensive.
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
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
Why is it that relatively poor countries uses labor intensive technology while rich countries tend to use capital intensive technology?
Relatively poor countries often have abundant labor resources and limited access to capital. Therefore, they tend to rely on labor-intensive technology as it is more cost-effective for them. On the other hand, rich countries have higher levels of capital and advanced technology, enabling them to invest in more capital-intensive technologies that increase productivity and efficiency.
What is capital intensive technique?
its a secret
