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If a production function is homothetic, the MRTS is the ratio of the inputs used. But is the converse also true?

Let me take the focus of a 2 goods consumption setting (which is analogues to the production setting) and assume that the indifference curves are convex and differentiable, so every point has a unique ...
tdm's user avatar
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If a production function is homothetic, the MRTS is the ratio of the inputs used. But is the converse also true?

No, the first statement, that the MRTS is the ratio of the inputs used is already false. A counterexample: the production function $$ F(K,L) = K + L $$ is homothetic, the absolute value of the MRTS is ...
Giskard's user avatar
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