Business, Legal & Accounting Glossary
The ratio of capital used to produce an output over a period of time. This ratio has a tendency to be high when capital is cheap as compared to other inputs. For instance, a country with abundant natural resources can use its resources in lieu of capital to boost its output, hence the resulting capital output ratio is low.
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This glossary post was last updated: 20th November, 2021 | 0 Views.