Which production method often requires higher initial investment in equipment?

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The choice of capital-intensive production methods is accurate because these approaches rely heavily on machines and technology rather than human labor. Since it requires significant investment in specialized equipment and technology, businesses that adopt capital-intensive methods typically face higher initial costs. This investment is necessary to automate processes, increase efficiency, and produce goods at a larger scale.

In contrast, labor-intensive methods focus on human workers instead of machinery, thus requiring a lower initial investment in equipment. Job production, which involves custom or bespoke production tailored to individual customer needs, also does not necessitate as much upfront investment in machinery since it can often rely on manual labor. Flow production involves a continuous process, but it can vary in its capital investment depending on the scale of production and automation, which is less predictable compared to capital-intensive methods. Therefore, the nature of capital-intensive production, with its emphasis on high-tech machinery and automation, justifies the need for a higher initial investment in equipment.

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