Capital vs labour intensive production Flashcards
1
Q
What is capital intensive production?
A
Using more machinery in production
2
Q
What is labour intensive production?
A
Using more workers in production
3
Q
What are some benefits of capital intensive production?
A
Cheaper than staff in LT
Consistent
Work 24/7
4
Q
What are some drawbacks of capital intensive production?
A
High set up costs
Only suited to 1 task
Need maintenance and repair
5
Q
What are some benefits of labour intensive production?
A
Cheaper if labour is low cost
People can be retrained
Cheaper on small scale
6
Q
What are some drawbacks of labour intensive production?
A
People are harder to manage, they may demand higher wages and need breaks
