If a producer can use resources to produce either good A or good B, then A and B are

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Quizplus · Accepted Answer

If a producer can use resources to produce either good A or good B, then A and B are substitutes in production, as the producer can choose to produce one or the other depending on which is more profitable or efficient. Substitutes in consumption refer to goods that can be consumed in place of each other, while complements in production refer to goods that are often produced together, such as bread and butter. Complements in consumption refer to goods that are often consumed together, such as coffee and cream.

If a Producer Can Use Resources to Produce Either Good