Assertion (A): Capital-intensive production normally needs less fixed capital. Reason (R): It uses relatively more machinery and equipment.

For the following practice assertion–reason questions, choose: (A) Both A and R are true, and R correctly explains A. (B) Both are true, but R does not correctly explain A. (C) A is true, but R is false. (D) A is false, but R is true.

Answer – (D) The assertion is false; greater machinery normally increases fixed-capital needs.