>> 'False' and 'doubtful' if you assume: three inputs, two outputs, no
>> substitutibility, no technological change.

> No. The conclusions of that piece do not depend on those assumptions.
> I have told Dan this before. Furthermore, I don't even see that
> "no substituability", whatever that is supposed to mean, is assumed
> in that piece.

Try using a constant elasticity of substitution function (you'll need two,
one for each output). There's lots of stuff about CES on the web. The 
assumptions you used (fixed factor proportions, i.e. you can't substitute 
labor for capital or vice versa) are a subset of CES.
With CES you can adjust the elasticity of subsitution (from zero to 
infinite) to see how it affects your results.