Curvature of the iso-quant, Microeconomics

Assignment Help:

Curvature of the Iso-quant:

An iso-qunat is convex to the origin. This is so because as more and more units labour are employed, the producer would prefer to give up less and less of the other input to produce the same amount of output. This is shown in the following Figure:  

 

272_Curvature of the Iso-quant.png

For a rise in L from L1 to L2, the producer gives up K1 amount of K. For the same output level  q, as L increases from L3 to L4, she gives up K2 amount of K. As K2 < K1, it implies that for more units of L, the producer is willing to give up less of K. A convex iso-quant implies a diminishing MRTSLK. As   MRTSLK = MPi/MPk, a diminishing MRTS means as L increases, L MP  decreases and MPK increases.  


Related Discussions:- Curvature of the iso-quant

Cost theory, What are the economies and diseconomics of scale?

What are the economies and diseconomics of scale?

Demand for the big mac on the rise, illustrate and explain the changing dem...

illustrate and explain the changing demand for big mac using the indifference curve and budget line

Explain about Growth and development of country, How might one assess if a ...

How might one assess if a country in experiencing both growth and development? This is a matter of explaining clearly both growth and development; growth is an enhance in GDP (

Profits, explain normal profits

explain normal profits

Test, how much for taking a test

how much for taking a test

Business executives and choice of risk, Business Executives and Choice of R...

Business Executives and Choice of Risk *  Example - Study of 464 executives found that: 20% persons were risk neutral 40% persons were risk takers 20% perso

Introduction to macroeconomics , a. The diagram above depicts the current p...

a. The diagram above depicts the current position of a hypothetical economy using the Keynesian Income/Expenditure approach. If national income is currently at Y1 explain why this

Explain change in demand and a change the quantity demanded, What is the di...

What is the difference between a change in demand and a change the quantity demanded?  There is a distinction among demand and quantity demanded. Demand explains the behavior o

Tax policy implementation, Tax Policy Implementation:   Take, e.g., the...

Tax Policy Implementation:   Take, e.g., the case of tax policy. It attempted to raise resources by a combination of direct and indirect taxes to finance a large part of increa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd