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

Definition of perfect competition, 1. Prof. Marshall 'The more nearly perfe...

1. Prof. Marshall 'The more nearly perfect a market is, the stronger is the tendency for same price to be paid for same thing at the same time in all parts of the market". 2. Pr

Average revenue (ar), Average Revenue (AR) This is the revenue per uni...

Average Revenue (AR) This is the revenue per unit of the commodity sold.  It is obtained by dividing Total Revenue by total quantity sold.  For a firm in a perfectly competiti

Case let 2, 1.Is Indian companies running a risk by not giving attention to...

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

Economic cost, The economic cost Unemployment represents a terrible wa...

The economic cost Unemployment represents a terrible waste of resources and means that the economy is producing a lower rate of output than it could do if there were full empl

Demand forecasting, how sample size technique is helpful in demand forecast...

how sample size technique is helpful in demand forecasting of a particular product?

Presentation, to give presentation on the topic: shutdown and abandoned cos...

to give presentation on the topic: shutdown and abandoned cost analysis?

Determinants of demand, Determinants of Demand Price elasticity of dema...

Determinants of Demand Price elasticity of demand fluctuates from commodity to commodity. Whereas the demand of some commodities is highly elastic, demand for others is highly

Production theory and analysis, The production function is Q= 20 K0.5 L0.5 ...

The production function is Q= 20 K0.5 L0.5 Question: For the production function Q= 20 K0.5 L0.5 determine four combinations of capital and labor that will produce 100 and 200 unit

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