As the price of scanners with high-resolution cameras dropped, Ford began using them instead of human inspectors to check the quality of the painted surfaces of its cars. What is the relationship between capital and labor in this example?

Question

Quizplus · Accepted Answer

The use of scanners with high-resolution cameras instead of human inspectors shows that labor and capital are substitutes in production. The technology (capital) is able to perform the same task as the human inspectors (labor), which means that the company can produce the same output with fewer workers.

As the Price of Scanners with High-Resolution Cameras Dropped, Ford