What is the difference between labour intensive technique and capital-intensive technique?

Capital intensive refers to the amount of capital invested so as to increase the revenue and profit whereas labour intensive refers to amount spent on training to labour so as to increase the efficiency of labour which will ultimately result in the increased production.

What is labour intensive technology and capital-intensive technology?

Labour-intensive technique is one which uses large amount of labour and smaller amount of capital Page 4 Definition परिभाषा • According to Prof. Reddaway “labour- intensive technique is one in which larger amount of labour is combined with a smaller amount of capital.”

What is the difference between labour and capital?

Labor — human effort used in production which also includes technical and marketing expertise. Capital stock — human-made goods which are used in the production of other goods. These include machinery, tools, and buildings.

What is labor intensive technique of production?

Labour intensive is when products are mainly produced by human workers. Machines and special tools may be used too, but overall it requires human creativity and effort to produce the product. A busy kitchen is one example of labour intensive production.

What is capital-intensive labor?

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).

What means capital-intensive?

The term “capital intensive” refers to business processes or industries that require large amounts of investment to produce a good or service and thus have a high percentage of fixed assets, such as property, plant, and equipment (PP&E).

What is the relationship between Labour and capital?

To produce effectively, labor must be supplied with materials to work upon, and be aided by shelter, tools, machinery, and other productive appliances. All of these require capital, that is, an accumulation of previous earnings.

What is Labour capital?

Labor is the effort that people contribute to the production of goods and services. The third factor of production is capital. Think of capital as the machinery, tools and buildings humans use to produce goods and services.

What is a capital intensive technique?

Capital intensive technique refers to that technique in which larger amount of capital is comparatively used. In such a technique the amount of capital used per unit of output is larger than what it is in case of labour intensive technique.

What do you mean by capital intensive?

What is the meaning of capital-intensive production?

What is the difference between labor intensive and capital intensive?

• 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.

What are the advantages and disadvantages of capital intensive?

So in my conclusion capital intensive is highly better than labour intensive because of many advantages that i mention above but they also have disadvantages such as making unemployment but they have more advantages which are non stop production, high efficiency, lower working cost or wages, error free and.better to control production process thats why many big firms change from labour intensive to capital intensive because of the advantages that i mention above.

What are the disadvantages of labour intensive?

Relatively expensive in the long-term when compared to machinery – higher per unit costs due to lower levels of productivity.

2. Relatively inefficient and inconsistent levels of effort.

Labour relation problems,e.g. may go on strike.

There could be a shortage of skilled labour,unlike machinery.

What is working capital intensive?

Capital intensive refers to an endeavor or project that requires a great deal of capital to undertake. A project or business that is capital intensive often has much more risk, since a larger investment of cash or tangible assets is required. Generally, many businesses or projects that produce tangible goods require more…