Capital intensive usually refers to a business or industry that requires a substantial amount of money or financial resources to engage in its specific business. Usually, the money is necessary to purchase the extensive amount of capital goods used in the business. For instance, an airline is a capital-intensive business because of the cost of passenger jets needed to operate the business. New commercial passenger jets range in price from $75 million to $300 million each. The best way to determine if a business is capital intensive is to compare its capital goods expenditures to its labor costs. There is no benchmark capital intensity ratio, but if a company spends substantially more on capital than it does on labor, it is most likely a capital-intensive company. Other capital-intensive industries include the oil refining and production industry, the trucking and railroad industries, telecommunications, and chemical manufacturing. Capital-intensive industries have a high barrier to entry because of the enormous amount of financial resources necessary to start and run the business. Still, once the company gets going and reaches economies of scale profit margins, such businesses can be very profitable. This potential for an eventual payoff of high profits is why investors still finance capital-intensive businesses.