Capital Intenstive

• The mix of resources can be capital intensive which uses a relatively high proportion of capital such as machinery in the production of a good or service
• Capital intensive tends to occur in the secondary sector of the economy i.e. manufacturing
• Increased productivity
• Improved quality and speed
• Reduced labour costs
• Greater opportunities for economies of scale
• High investment outlay
• Lack of human initiative
• Greater resistance to change by workforce e.g. retraining to use new equipment