Answered: Suppose that the production function is…

Suppose that the production function is ƒ(x1,x2) = (xĩ + x²)º, where a and b are positive constants. For what values of a and b is there a diminishing technical rate of substitution (TRS)?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.5CE

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Suppose that the production function is f(x1,x2) = (xf + x£)», where a and
b are positive constants. For what values of a and b is there a diminishing technical rate
of substitution (TRS)?

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