In the United States, where Internet services are cheap, the ratio of capital to labor used is higher than that of capital used in accounting services. But in other coun- tries, where Internet services are expensive and labor is cheap, it is common to use less capital and more labor than in the United States. Can we still say that Internet services are capital intensive compared to accounting services? Why or why not?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
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Chapter9: Production Functions
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In the United States, where Internet services are cheap, the ratio of capital to labor used is higher than that of capital used in accounting services. But in other coun- tries, where Internet services are expensive and labor is cheap, it is common to use less capital and more labor than in the United States. Can we still say that Internet services are capital intensive compared to accounting services? Why or why not?
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