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Capital Intensive Production

Capital intensive production refers to production methods that require a high level of investment in capital equipment and technology, rather than labor. Here are some examples:

  • Automated assembly lines in factories, which use robots and machines to assemble products with minimal human intervention.
  • Oil drilling and refining, which requires expensive equipment and machinery.
  • Mining, which requires heavy machinery and equipment to extract minerals and resources.
  • Semiconductor manufacturing, which requires sophisticated equipment and facilities to produce computer chips and other electronic components.

In general, capital intensive production is associated with higher upfront costs, but it can also result in higher productivity and efficiency in the long run, as machines and technology can work faster and more accurately than humans. However, it also means that a greater proportion of the company's revenue goes towards maintaining and upgrading its capital equipment.

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