The marginal rate of technical substitution(MRTS)is the rate at which two
inputs can be substituted for each other and still leave the output unchanged
(stay on the same isoquant). Thus the MRTS of input X1 for input X2 is
- dX2
MRTS = -------- ∣ _
dX1 y = y
(a)Show that σ can be written as
f1^2 X1 + f1 f2 X2
σ = -----------------------------------------------
f2 X1 X2[(fδ(MRTS)/δX2 )+(f2 δ(MRTS)/δX1)]
δ=偏微符號
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