Answer to Question #323791 in Microeconomics for rubaiya

Question #323791

 Why do some firms use lots of capital and not much labour, while others use not much capital and lots of labour?



1
Expert's answer
2022-04-11T16:54:41-0400

It depends on the type of production. Some firms are capital intensive and their effectiveness increasing if they use more capital than labour. Opposite situation with labour intensive products.


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