Capital-Intensive
A production method or business that relies heavily on machinery, equipment, and technology rather than labour to produc...
Real World
Tesla's Gigafactory in Texas is highly capital-intensive — robots perform the vast majority of assembly tasks, keeping variable labour costs low per car and allowing the factory to scale output without hiring proportionally more workers.
Exam Focus
Link capital intensity to the cost structure: high fixed costs but low variable costs per unit — this unlocks the analysis marks.
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