A Firm Is More Likely to Use a Labor-Intensive Method

question 99

True/False

A firm is more likely to use a labor-intensive method of production when the relative amount of available labor is greater than the available amount of capital.

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Definitions:

Absolute Advantage

A condition where a country, individual, or company can produce a good or service at a lower cost in terms of labor and resources than competitors.

Comparative Advantage

An economic theory stating that in order to gain from trade, countries should specialize in producing goods for which they have a lower opportunity cost.

Computers

Electronic devices capable of processing, storing, and retrieving data, widely used for work, education, and entertainment.

Roses

Flowering plants known for their beauty and fragrance, often cultivated for decorative purposes and their symbolic significance in various cultures.