A homothetic production function has the property that, whenever we multiply inputs by a factor λ, the marginal rate of technical substitution between all inputs doubles.

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A homothetic production function implies that when we multiply all inputs by a factor λ, the output is multiplied by some function of λ, but it does not specifically affect the marginal rate of technical substitution (MRTS) between inputs in the way described. The MRTS depends on the shape of the isoquants and not directly on the scale of operation.

A Homothetic Production Function Has the Property That, Whenever We