K and L are perfect substitutes in production in the following production function:
A)KL/2.
B)K + L.
C)min(K,L).
D)max(K,L).

Name: K and L are perfect substitutes in production in the following production function: A)KL/2. B)K + L. C)min(K,L). D)max(K,L).
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Question

Quizplus · Accepted Answer

Perfect substitutes in production means that one input can be substituted for another at a constant rate without affecting output. The production function K + L implies that K and L can be substituted one-for-one, making them perfect substitutes.

K and L Are Perfect Substitutes in Production in the Following