ABSTRACT

There is another category of concerns for which the labour-co-operative type of organisation is inappropriate, namely, the concern whose production technology is necessarily very capital-intensive. In many cases concerns which are very capital-intensive in their technical processes of production are also concerns in which there are economies of large-scale production. The two categories of concerns often overlap. But there may well be firms which are inevitably very capital-intensive in their techniques of production even though their economies of scale relative to the total market for the product are not sufficiently marked to run into serious problems of monopoly power. In these cases also, however, orthodox labour co-operatives are probably to be ruled out because of the problem of risk-bearing.