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

Two inputs that must be combined in a fixed ratio are classified as perfect complements, whereby the production depends on the fixed combination of the inputs in a specific proportion. The fixed ratio of input combination implies that a change in one input quantity does not affect the total output unless the other input also changes in the same proportion.

Two Inputs ______ When They Must Be Combined in a Fixed