Labor capital substitution effect
How can the answer be improved?Substitution of labor and capital. One technology, the least capital intensive, involves the use of an aligner machine. Employees use a microscope to line up layers by hand and process the wafer. Each worker uses one aligner machine and can produce chips at the rate of 3. 125 per hour. A second technology, which is more capital intensive, labor capital substitution effect
Jan 31, 2019 Capital labour substitution. Group(s): Key terms and concepts; Print page. Share: Share on Facebook Share on Twitter Share on Linkedin Share on Google Share by email. Replacing workers with machines in a bid to increase productivity and reduce the unit cost of production.