Labour-intensive production
In Economics, labour is the all human efforts in the production. Labour does not only mean the labourers in an industrial site. If we take an example of a tourist resort, labour includes the receptionists, bell boys, bartenders, waiters, admin assistants, telephone operators etc.
Labour-intensive production means that the way that a good or service is produced depends more heavily on labour than the other factors of production, such as capital.
Labour intensive method of production is usually used for individual or personalised products, or to produce on a small scale.
Examples of labour-intensive production are hotels, restaurants, small scale farming, pole-and-line fishing, mining etc.
Capital-intensive
‘Capital’ refers to the equipment, machinery, vehicles and so on that a business uses to make its product or service. This meaning is also consistent with the meaning that the capital is the resources provided by the owner/owners to the business to do the business.
Capital-intensive processes are those that require a relatively high level of capital investment compared to the labour cost.
These processes are more likely to be highly automated and to be used to produce on a large scale.
An industry that is capital intensive is – oil refining, manufacturing.
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Gaurav Seth 5 years, 3 months ago
Labour-intensive production
In Economics, labour is the all human efforts in the production. Labour does not only mean the labourers in an industrial site. If we take an example of a tourist resort, labour includes the receptionists, bell boys, bartenders, waiters, admin assistants, telephone operators etc.
Labour-intensive production means that the way that a good or service is produced depends more heavily on labour than the other factors of production, such as capital.
Labour intensive method of production is usually used for individual or personalised products, or to produce on a small scale.
Examples of labour-intensive production are hotels, restaurants, small scale farming, pole-and-line fishing, mining etc.
Capital-intensive
‘Capital’ refers to the equipment, machinery, vehicles and so on that a business uses to make its product or service. This meaning is also consistent with the meaning that the capital is the resources provided by the owner/owners to the business to do the business.
Capital-intensive processes are those that require a relatively high level of capital investment compared to the labour cost.
These processes are more likely to be highly automated and to be used to produce on a large scale.
An industry that is capital intensive is – oil refining, manufacturing.
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