What is a roundabout method of production?

Question

Quizplus · Accepted Answer

A roundabout method of production refers to the production of capital goods that are used to enhance productive capabilities. This means that instead of producing the final consumer goods directly, a business might first produce capital goods (like machinery or equipment) that make the production of the consumer goods more efficient. While this approach may take longer and be more expensive, it can lead to greater productivity in the long run.

What Is a Roundabout Method of Production