Firms with high capital intensity ratios have found ways to lower this ratio permitting them to achieve a given level of growth with fewer assets and consequently less external capital.For example, just-in-time inventory systems, multiple shifts for labor, and outsourcing production are all feasible ways for firms to reduce their capital intensity ratios.

Question

Quizplus · Accepted Answer

The statement correctly describes how firms can reduce their capital intensity ratio and achieve growth with fewer assets and less external capital.

Firms with High Capital Intensity Ratios Have Found Ways to Lower