High investment intensity requires firms to:
A)operate at or near capacity.
B)decrease the rate of rivalry.
C)to increase profit margin.
D)to decrease production.

Question

Quizplus · Accepted Answer

High investment intensity means that firms have invested a significant amount of money in their production facilities or other assets. To justify this investment, they need to operate at or near capacity to maximize their output and revenue. Decreasing the rate of rivalry, increasing profit margin, or decreasing production would not directly help firms justify their investment intensity.

High Investment Intensity Requires Firms To