analys reason why car production has become more capital intensive
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Explanation:
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Airlines, auto manufacturers, and drilling operations are often considered capital-intensive businesses because they require large amounts of expensive equipment and raw materials to make their products. ... The higher the ratio between capital and labor expenses, the more capital intensive a business is.
Answer:
Airlines, auto manufacturers, and drilling operations are often considered capital-intensive businesses because they require large amounts of expensive equipment and raw materials to make their products. ... The higher the ratio between capital and labor expenses, the more capital intensive a business is.
Explanation:
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).