Capital intensive technique would get chosen in aa)labour surplus econ...
Explanation:
Capital intensive technique refers to the production process that requires a large amount of capital and less labor. In such a technique, the cost of machinery and equipment is high, and the cost of labor is low. Therefore, it is better suited for capital surplus economies.
Labour Surplus Economy:
In a labor surplus economy, there is an abundance of labor and a shortage of capital. Hence, the best-suited technique would be labor-intensive, where labor is cheap and abundant, and capital is scarce. Such a technique would help to generate more employment opportunities and improve the standard of living of the people.
Capital Surplus Economy:
In a capital surplus economy, there is an abundance of capital and a shortage of labor. Therefore, capital-intensive techniques are better suited to such economies. It requires less labor and more capital, which is easily available. This technique helps to produce goods and services at a large scale, which can be sold in the market for higher profits.
Developed Economy:
In a developed economy, both capital and labor are equally available. Hence, a balanced technique, which uses both labor and capital equally, is suitable. Such a technique helps to produce goods and services efficiently, which reduces the cost of production and increases profitability.
Developing Economy:
In a developing economy, both capital and labor are scarce. Hence, a technique that requires less capital and more labor is suitable. Such a labor-intensive technique helps to generate more employment opportunities, improve the standard of living of the people, and develop the economy.
Conclusion:
Therefore, the capital-intensive technique is suitable for a capital surplus economy where capital is abundant, and labor is scarce. It helps to produce goods and services efficiently and maximize profits.
Capital intensive technique would get chosen in aa)labour surplus econ...
B..because in this technique more use of capital than labour
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