Two inputs,labor and capital,are considered complements if:
A)a fall in the price of labor leads to a fall in the price of capital.
B)they can replace each other in the production process.
C)a fall in the price of labor leads to an increase in the price of capital.
D)increasing the quantity of labor increases the marginal product of capital.

Question

Quizplus · Accepted Answer

In economics, two inputs are considered complements if using more of one input increases the productivity (marginal product) of the other input. Therefore, if increasing the quantity of labor increases the marginal product of capital, labor and capital are complements. This is because their use together in production is more productive than their use separately.

Two Inputs,labor and Capital,are Considered Complements If