Question

analys reason why car production has become more capital intensive​

Answer 1

Answer: Capital intensive

Capital intensive refers to a productive process that requires a high percentage of investment in fixed assets (machines, capital, plant) to produce.

A capital-intensive production process will have a relatively low ratio of labour inputs and will have higher labour productivity (output per worker).

A capital intensive production process will tend to have a high ratio of fixed costs to variable costs. As a result, the productive process will have economies of scale (increased output leads to lower average costs)