As a firm increases its use of labor relative to capital, it is becoming more:
A) capital intensive.
B) labor intensive.
C) efficient.
D) cost conscious.

Question

Quizplus · Accepted Answer

If a firm is increasing its use of labor relative to capital, it is becoming more labor intensive. This means that labor is playing a larger role in the production process compared to capital. This could be due to factors such as labor being cheaper or more readily available than capital. However, it does not necessarily imply that the firm is becoming more efficient or cost conscious.

As a Firm Increases Its Use of Labor Relative to Capital