Figure 6.6 Perfect Substitutes and Perfect Complements in Production
(a) Robots K and labor L are perfect substitutes. The isoquants are straight lines, and the MRTSLK does not change along the isoquant. In this case, two humans can substitute for one robot.(b) Cabs K and drivers L are perfect complements. The isoquants are L-shaped, and the optimal quantity (K, L) for each output Q is the corner of the isoquant. In this case, 1 cab with 1 driver produces Q = 1, while 2 cabs with 2 drivers produce Q = 2.