Which scenario reflects the capital-intensive nature of a manufacturer?
A) A lawyer provides varying services that include consulting clients on legal documents, preparing legal documents for clients, and representing clients in court.
B) An electrician goes into customers' homes and fixes a variety of expensive electrical issues.
C) Computers R Us provides temporary support personnel to help new customers use its products.
D) Underfoot offers customers many flooring options, and their prices include installation.
E) Brew Master mass produces coffee makers with multiple settings, so customers can choose whether they want to brew a cup, two cups, or an entire pot using the same machine.

Question

Quizplus · Accepted Answer

A manufacturer is likely to be more capital-intensive because of the machinery and technology used in the mass production of highly similar goods. The scenario in which Brew Master mass produces coffee makers with multiple settings illustrates the capital-intensive nature of manufacturers. The mass production of such a good requires using expensive machinery and technology.

Which Scenario Reflects the Capital-Intensive Nature of a Manufacturer