Resource Reliance in Production Methods

Steps:

• Define capital-intensive production as relying heavily on machinery and technology over human labor.
• Define labor-intensive production as depending mainly on human workers with minimal machinery.
• Compare the two: the core distinction lies in the primary inputs used.
• Eliminate options unrelated to inputs, confirming the focus on resources.

Why C is correct:

• By definition, capital-intensive uses more capital (e.g., machines) relative to labor, while labor-intensive prioritizes human effort, directly tying to resource reliance.

Why the others are wrong:

• A: Market structure refers to competition levels, not production inputs.
• B: Output type is the end product, unrelated to method differences.
• D: Firm size affects scale but not the capital-labor ratio in production.

Final answer: C