If two variable inputs are related and utilizing more of one increases the marginal product of the other, then these inputs are:
A) equal.
B) substitutes.
C) complementary.
D) variable.
E) constant.

Question

Quizplus · Accepted Answer

If utilizing more of one variable input increases the marginal product of the other, then the two inputs are complementary. This means that they are typically used together in fixed proportions to produce a given output.

If Two Variable Inputs Are Related and Utilizing More of One