To produce one unit of output, a firm can use either one unit of capital or one unit of labor. In this case, capital and labor are
A) complementary inputs.
B) substitutable inputs.
C) both complementary and substitutable inputs.
D) unrelated inputs.

Question

Quizplus · Accepted Answer

Capital and labor are substitutable inputs because the firm can use either one unit of capital or one unit of labor to produce one unit of output.

To Produce One Unit of Output, a Firm Can Use