Re: Please help with this Production Technology question!

Posted by Dreyfus on May 13, 2014; 5:56pm
URL: http://discussion-forum.276.s1.nabble.com/Please-help-with-this-Production-Technology-question-tp7589575p7589612.html

To check whether TRS diminishing or not dTrs/dx1<0
dTRS/dx1=d(f1/f2)/dx1  using quotient rule and chain rule
I'll get dTRS/dx1={f2²*f11-2f1*f2*f12+f1²*f22}/f2³
fi is partial derivative
f2>0 therefore denominator is positive
For numerator to be negative.... f11, f22 has to be negative and f12 has to be positive and it make sense also!
Now impose the conditions .......for a,b C