The fact that a firm is using a capital-intensive method of production means that input substitution is not possible.

Question

Quizplus · Accepted Answer

Input substitution is still possible even when a firm is using a capital-intensive method of production. While it may not be as easy to substitute labor for capital or vice versa, it is still possible to adjust the mix of inputs to achieve greater efficiency and cost savings.

The Fact That a Firm Is Using a Capital-Intensive Method