You might think that when a production function has a diminishing marginal rate of technical substitution of

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You might think that when a production function has a diminishing marginal rate of technical substitution of labor for capital, it cannot have increasing marginal products of capital and labor. Show that this is not true, using the production function Q = K2L2, with the corresponding marginal products MPK = 2KL2 and MPL = 2K2L.
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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