If Capital and Labor Are Gross Complements in Production

question 1

Multiple Choice

If capital and labor are gross complements in production,

• A) then the scale effect dominates.
• B) then the substitution effect dominates.
• C) then the scale and substitution effects are of equal magnitude.
• D) then capital and labor must be used in a one to one ratio.
• E) then capital and labor cannot be used at the same time.

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Definitions:

Control Specifier

A component in formatted input/output functions in languages like C, specifying the type of data to be inputted or outputted.

Floating-Point Expression

A mathematical expression involving floating-point numbers which are numbers with decimal points.

Real Expression

An expression in programming that evaluates to a floating-point number.

Double-Precision Expression

A term describing a type of floating-point arithmetic that uses double the number of bits than single-precision, offering greater precision and range.