Explain about concave isoquant, Managerial Economics

Assignment Help:

Q. Explain about Concave Isoquant?

If the isoquant is concave to origin it would mean that marginal rate of technical substitution is increasing. This behaviour is explained in Figure.

1918_Explain about Concave Isoquant.png

Figure: Concave Isoquant

It is apparent from the Figure that as labour is increased at a constant rate, amount of capital given up (ΔK) goes on increasing. Such behaviour is irrational and so isoquants aren't concave to the origin.


Related Discussions:- Explain about concave isoquant

What is data mining, Q. What is Data mining? Data mining: Data mining...

Q. What is Data mining? Data mining: Data mining is the process of extracting patterns from data. Data mining is seen as an increasingly important tool by modern business to

Budget, THE BUDGET The budget is a summary statement indicating the es...

THE BUDGET The budget is a summary statement indicating the estimated amount of revenue that the government requires and hopes to raise.  It also indicates the various sources

Approaches to measuring national income, APPROACHES TO MEASURING NATIONAL I...

APPROACHES TO MEASURING NATIONAL INCOME The compilation of national income statistics is a very laborious task.  The total wealth of a nation has to be added up and there are

Case let, Is Indian companies running a risk by not giving attention to cos...

Is Indian companies running a risk by not giving attention to cost cutting?n..

Opportunity costs, Why do the inclusion of opportunity costs in cost-and-su...

Why do the inclusion of opportunity costs in cost-and-supply analyses help individuals make better decisions and improve outcomes?

Short run equilibrium of a firm under monopoly, The short run equilibrium o...

The short run equilibrium of monopolist is displayed below in figure. Figure: Abnormal Profit under Monopoly AR is the average revenue curve, MR is marginal revenue cu

what is the elasticity of labor demand , Asuume there are two inputs in th...

Asuume there are two inputs in the production function, labor & capital, and these two inputs are perfect substitutes. The existing technology permits one machine to do the work of

Managerial Economics, Calculate point elasticity of demand for demand funct...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2

State the types of demand elasticity, State the types of demand elasticity ...

State the types of demand elasticity Income Elasticity: Elasticity of demand with respect to change in consumer's income. Price Expectation Elasticity of Demand: Elast

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