How do labor-saving technologies differ from labor-complementary technologies? Give an example of each
What will be an ideal response?
Labor-saving technology is a type of technology that can substitute for existing labor inputs, reducing the marginal product of labor. Labor-complementary technology is a type of technology that can complement existing labor inputs, increasing the marginal product of labor. Computers that displace workers on an assembly line in a factory are examples of labor-saving technology. A word-processing program is an example of a labor-complementary technology as it improves the productivity of secretaries or administrative assistants.
Economics