Suppose you experience diminishing marginal returns to both labor and capital, and the productivity of these two inputs are independent of one another (the amount of labor does not affect the marginal product of capital, and vice versa). At your current levels of employment in labor and capital, the ratio of marginal product of labor to capital (i.e. MPL/MPK) is 3. If you add capital but do not change the amount of labor, which of the following is FALSE?

The marginal rate of technical substitution (MPL/MPK) will decrease.

Output will increase by the amount of the marginal product of capital (MPK).

Graphically, this would be depicted by moving to a new isoquant curve.

This behavior will make the most sense if capital is cheaper than labor, and there is an increase in demand for your product.