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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.
What else can I help you with?
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
Labor-intensive and capital intensive?
Labor-intensive refers to a production process that relies more on human labor than machinery or technology, while capital-intensive refers to a process that relies heavily on machinery, equipment, or capital investment rather than on labor. Labor-intensive industries require more manual work and intensive supervision, while capital-intensive industries involve larger investments in equipment and technology.
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
Technology that is characterized by high initial cost and low operating costs is termed?
capital-intensive.
What kind of technology is characterized by low initial costs and high operating costs?
Capital-intensive
Is a feed mill capital intensive?
Owning a feed mill is a capital-intensive operation
Why are some organisation capital intensive and others labor intensive?
A bank or investment company would be considered 'capital intensive' , a construction company or landscaping company would be considered 'labour intensive' because they employ more people to try for the same gains.
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
Why is it that relatively poor countries uses labor intensive technology while rich countries tend to use capital intensive technology?
Many poor countries, by definition, have little capital to invest in technology. At the same time, they often have a large pool of low-skill workers who are accustomed to low wages. In these conditions it makes sense to invest the resources they do have (cheap labor) instead of the resources they don't have (capital). Wealthier countries tend to invest capital in technology because it allows for fast production without the use of as much manual labor, which in wealthier countries costs more than in poorer countries. Richer countries also often have stagnant or negative population growth, meaning that the pool of low-skilled workers is limited. In these conditions it makes sense to invest in technology, not labor
