Capital-intensive

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Updated: Aug 20, 2021

An adjective used to describe those industries where the amount of fixed capital used in production is high, both absolutely and as an amount per person employed. Capital-intensive industries are those which depend more on the machines involved in production than on the people employed to tend them. i.e. industries where the cost of capital constitutes the major cost factor and far outweighs the cost of labour. The ultimate in capital-intensive industry would be a fully automated factory.

Reference: The Penguin Business Dictionary, 3rd edt.



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