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Distinguish between labour-intensive production and capital-intensive production. - Scottish Highers Business Management - Question b - 2023
Question b
Distinguish between labour-intensive production and capital-intensive production.
Worked Solution & Example Answer:Distinguish between labour-intensive production and capital-intensive production. - Scottish Highers Business Management - Question b - 2023
Step 1
Distinguish between labour-intensive production
Answer
Labour-intensive production relies heavily on human labor for the manufacturing of goods. Key characteristics include:
- Production processes may come to a halt if skilled staff are ill or absent.
- The individual requirements of customers can be met more easily, allowing for customization.
- Quality may vary since it is dependent on the skills and expertise of the employees.
- Costs can be high due to recruitment, selection, and training of employees.
Step 2
Distinguish between capital-intensive production
Answer
Capital-intensive production, on the other hand, relies primarily on machinery and technology. Key characteristics include:
- Machines can operate continuously (24/7), ensuring a steady production rate.
- Production can often be standardized, yielding a larger volume of identical products.
- This method generally allows for consistent quality across units.
- Initial costs can be high due to the need to purchase or maintain expensive machinery.