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For the Cobb-Douglas production function in Problem 6.7, in can be shown (using calculus) that
MPk = aK ^a-1 L ^b
MPl = bK ^a L^b-1
If the Cobb-Douglas exhibits constant returns to scale (a+b=1), show that
A) Both marginal productivities are diminishing.
B) The RTS for this function is given by
RTS = bK/aL
C) The function exhibits a diminishing RTS.
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