Question: 9.8 Show that Eulers theorem implies that, for a constant returns-to-scale production function [q f (k, l )], q fk % k

9.8 Show that Euler’s theorem implies that, for a constant returns-to-scale production function [q ¼ f (k, l )], q ¼ fk % k þ fl % l:

Use this result to show that, for such a production function, if MPl > APl then MPk must be negative. What does this imply about where production must take place? Can a firm ever produce at a point where APl is increasing?

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