A capital intensive production process is one in which:
A) highly specialized capital is needed to produce the good.
B) a part of the production process must be done by capital and cannot be substituted.
C) a lot of capital is hired relative to the total inputs needed to produce the good.
D) total costs will be minimized if capital is the primary factor of production used.

Question

Quizplus · Accepted Answer

A capital intensive production process is one where a significant amount of capital is hired relative to the total inputs required to produce the good. This means that the process relies heavily on expensive and specialized capital equipment, machinery, and technology. It often involves high fixed costs that must be spread out over a large quantity of output to be profitable.

A Capital Intensive Production Process Is One in Which