A capital-intensive production process:

Question

Quizplus · Accepted Answer

A capital-intensive production process uses a high ratio of capital to labor inputs, therefore it requires significant investment in capital equipment and technology, but can result in higher productivity and efficiency. It is not necessarily used in poor countries, and it does not necessarily reduce productivity because it employs fewer workers. It may be necessary if a country has limited resources, but it is not the only reason for using a capital-intensive production process.

A Capital-Intensive Production Process