reasons for production choices

Question 1

quantity of goods required

Answer 1

if large quantities are required, capital-intensive production will be more suitable than labour-intensive

Question 2

skills of the workforce

Answer 2

if the workforce is highly skilled, their expertise would be better suited to labour-intensive production

Question 3

cost of labour

Answer 3

rising labour costs could mean that the business should move to capital-intensive production

Question 4

finance available

Answer 4

large amounts of finance are required to equip factories or hire the number of staff needed for large scale capital-intensive production

Question 5

technology available

Answer 5

if the business doesn’t have the technology required for capital-intensive production, labour-intensive is the only option