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Firms with High Capital Intensity Ratios Have Found Ways to Lower

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Firms with high capital intensity ratios have found ways to lower this ratio permitting them to achieve a given level of growth with fewer assets and consequently less external capital.For example, just-in-time inventory systems, multiple shifts for labor, and outsourcing production are all feasible ways for firms to reduce their capital intensity ratios.


Definitions:

Axon

An axon is a long, slender projection of a nerve cell, or neuron, that typically conducts electrical impulses away from the neuron's cell body.

Neural Impulses

Electrical signals that transmit information along neurons, facilitating communication within the nervous system.

Visual Processing Centers

Brain regions responsible for interpreting visual information, including the primary visual cortex and associated pathways.

All-Or-None Response

A principle that states a neuron or muscle fiber responds completely or not at all to a stimulus, without intermediate levels of response.

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