8. LDC planners must examine existing technologies for possible substitution of labor for capital. Nevertheless, the maximization of labor absorption is inadequate as an investment criterion. Labor-intensive techniques may sometimes not be used because of fixed capital–labor ratios in the industry, the high cost of adapting and modifying existing technologies, scarce administrative and managerial resources needed to implement labor-intensive techniques,and distortions that increase the price of labor relative to that of capital.