Productivity
Factors impacting productivity:
- Specialisation and Division of Labour
- Education and Training
- Motivation of Workers
- Working Practices
- Labour Flexibility
- Capital Productivity – Investment in new technology
Labour-Intensive Production – reliant on humans more labour forms a high % of total costs, but adds value as needs met
Capital-Intensive Production – automation reliant (machines) high barriers to entry Fewer costs, but initial costs high