In which of the following situations would a firm be more likely to re

In which of the following situations would a firm be more likely to rely on a capital-intensive method of production?

A) When the rate of technological innovation is low.
B) When capital is relatively expensive.
C) When the firm’s output cannot be produced using the assembly line method of production.
D) When labor supply is limited relative to the available amount of capital.

ANSWER

D