The technical rate of substitution in two dimensional cases is just the slope of the iso-quant. The firm has to adjust x2 to keep out constant level of output. If x1 changes by a small amount then x2 need to keep constant. In n dimensional case, the technical rate of substitution is the slope of an iso-quant surface. It is [...]
Here is a term paper on the ‘Production Function’ for class 9, 10, 11 and 12. Find paragraphs, long and short term papers on the ‘Production Function’ especially written for school and college students. Term Paper on Production Function Term Paper Contents: Term Paper on the Introduction to Production Function Term Paper on the Inputs to Output Function of a [...]
The Envelope theorem is explained in terms of Shepherd's Lemma. In this case, we can apply a version of the envelope theorem. Such theorem is appropriate for following case: Envelope theorem is a general parameterized constrained maximization problem of the form Such function is explained as h(x1, x2 a) = 0. In the case of the cost function, the function [...]