12.3.1 Labour Intensive vs Capital Intensive

For this activity:

You will need to write down your answers in your Mahara e-portfolio.

In this theme you have learnt that one of the major operational decisions that must be considered is what combination of labour intensive or capital intensive factors of production will be used.

Consider the following task and prepare a short description, justifying your comments.

It may help if you use the internet and other sources of information to research your answers. You should present your answers digitally so that they are accessible to share.

Task:

Describe what determines an entrepreneur’s choice of labour intensive or capital intensive methods of production.