Suppose a firm uses three inputs in production,capital,labor,and land.If the price of labor increases,the firm adjusts by decreasing the amount of labor used,increasing the amount of capital used and decreasing the amount of land used.What does this imply about the relationship between the three inputs?
A) Land and labor are net substitutes while labor and capital are net complements.
B) Land and labor are net complements while labor and capital are net substitutes.
C) Land and labor are gross substitutes while labor and capital are gross complements.
D) Land and labor are gross complements while labor and capital are gross substitutes.
E) none of the above
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