Labor and capital are often complements in production because the use of capital enhances the productivity of the labor and vice versa.

Question

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Labor and capital are often used together in production processes, with each complementing the other in achieving higher levels of productivity. By using capital equipment like machines, computers, and tools, workers can produce goods and services more efficiently and effectively. At the same time, the skill and knowledge of labor can improve the performance of capital equipment by ensuring that it is used properly and maintained in good working order. Therefore, labor and capital are considered complementary factors of production.

Labor and Capital Are Often Complements in Production Because the Use