If capital and labor are substitute inputs, the productivity of labor falls as the use of capital increases.

Name: If capital and labor are substitute inputs, the productivity of labor falls as the use of capital increases.
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If capital and labor are substitute inputs, the productivity of labor increases as the use of capital increases. This is because the capital helps to augment or complement the labor, leading to an overall increase in productivity.

If Capital and Labor Are Substitute Inputs, the Productivity of Labor