Economics of innovation: A capital-intensive process, with reduced marginal costs and increased fixed costs, is more efficient than labour intensive process for:
o Low scale of production
o low quality of capital
o high quality of raw materials
o high scale of production

Question

A capital-intensive process, with reduced marginal costs and increased fixed costs, is more efficient than labour intensive process for:
o Low scale of production
o low quality of capital
o high quality of raw materials
o high scale of production

Nasta Charniak · Accepted Answer

o high scale of production

Economics of innovation

A capital-intensive process, with reduced marginal costs and increased fixed costs, is more efficient than labour intensive process for: o Low scale of production o low quality of capital o high quality of raw materials o high scale of production

O high scale of production

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