Two inputs ______ when they must be combined in a fixed ratio.
A) Are perfect substitutes
B) Are perfect complements
C) Represent Cobb-Douglas technology
D) Are fixed inputs

Question

Quizplus · Accepted Answer

When two inputs must be combined in a fixed ratio to produce a certain output, they are considered perfect complements. This means the inputs work best together in a specific proportion, illustrating a key characteristic of perfect complementarity.

Two Inputs ______ When They Must Be Combined in a Fixed