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

Perfect complements are two inputs that must be combined in a fixed ratio. For example, a left shoe and a right shoe must be used together in a fixed ratio of 1:1, making them perfect complements. Perfect substitutes, on the other hand, can be used in place of one another in any ratio, while Cobb-Douglas technology represents a specific production function that incorporates multiple inputs. Fixed inputs are those that cannot be adjusted in the short run.

Two Inputs ______ When They Must Be Combined in a Fixed