Question

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What is Labour Intensive and Capital Intensive Techniques of Production?​

Answer 1

What is Labour Intensive and Capital Intensive Techniques of Production?

Capital intensive production requires more equipment and machinery to produce goods; therefore, require a larger financial investment. • Labor intensive refers to production that requires a higher labor input to carry out production activities in comparison to the amount of capital required.

Answer 2

$\bf\purple{QuestioN:-}$

                     

What is Labour Intensive and Capital Intensive Techniques of Production?​

           

$\bf\orange{AnsweR:-}$

These two terms are related with the question "How To Produce", which is an central economic problem. This question implies which methods or techniques of production are to be used. And that two methods are Labour Intensive Techniques Of Production and Capital Intensive Techniques Of Production. The choice of technique of production depends on the availability and price of labour and capital in the economy. It is beneficial to choose less expensive techniques of production.

                   

$\sf\pink{Labour\:\:Intensive\:Technique\:\:Of\:Production:-}$

               

Labour intensive technique of production is the technique which uses more labour and less capital. In labour intensive techniques there is no gap between investment and production. The labour begins to work with the available skill and the society gets the product.

                       

$\sf\pink{Capital\:\:Intensive\:Technique\:\:Of\:Production:-}$

               

Capital Intensive Technique Of Production is the technique which uses more capital and less labour. When capital intensive techniques of production are adopted, there is gap between production and investment.

                 

These are the main difference that we can point out of Labour Intensive and Capital Intensive Technique of Production.

               

           

                 

           

                 

             

Happy Learning Dear!!❤