If labor and capital are substitutes in production,then an increase in the amount of capital will

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Quizplus · Accepted Answer

When labor and capital are substitutes, an increase in the amount of capital typically makes labor less essential for production, thereby decreasing the marginal product of labor. This is because each additional unit of labor contributes less to output when more capital is available to perform the same tasks.

If Labor and Capital Are Substitutes in Production,then an Increase