Explain about isoquant map, Managerial Economics

Assignment Help:

Q. Explain about Isoquant Map?

We can label isoquants in physical units of output without any difficulty. Because every isoquant signifies a specified level of output it's possible to say by how much the output is lesser or greater on one isoquant than on other. This is elucidated by an isoquant map displayed in Figure below.

23_Explain about Isoquant Map.png

Figure: Isoquant Map

It demonstrates that output is 20 units, 40 units and 60 units on isoquants Q1, Q2 and Q3 respectively. So on isoquant Q2 the output is 20 units more than on isoquant Q1; and on isoquant Q3 output is 40 units more than on isoquant Q1. So an isoquant map facilitates not only measurement of the physical quantities of output though also comparison the size of output between various isoquants. Theoretically, an isoquant map comprises an infinite number of isoquants. This is because response of output to infinite changes in factors is presumed to be continuous.


Related Discussions:- Explain about isoquant map

Phillips curve, PHILLIPS CURVE   The Phillips  curve,  named  after  A....

PHILLIPS CURVE   The Phillips  curve,  named  after  A.  W.  Phillips,  describes  the  relationship between unemployment  and  inflation. In  1958  Phillips, then  professor a

Mixed economy, The Mixed Economy There are no economies in the world w...

The Mixed Economy There are no economies in the world which are entirely 'market' or planned, all will contain elements of both systems. The degree of mix in any one econom

Decrease in demand - effect on equilibrium price, Decrease in Demand ...

Decrease in Demand At the initial equilibrium price P 1 , quantity demanded falls from q 1 to q d .  But the quantity supplied is still q 1 at this price.  Hence, this

Advantages of perfect market, Advantages of Perfect Market It achi...

Advantages of Perfect Market It achieves, subject to certain conditions, an allocation of resources which is: socially optimal" or "economically efficient" or "pareto effi

What is risk and production analysis, What is Risk and Production analysis ...

What is Risk and Production analysis Risk analysis:  Various models are used to quantify risk and asymmetric information and to employ them in decision rules to manage risk.

What are tools of factor markets and distribution of income, What are the t...

What are the tools of factor markets and the distribution of income? Tools of factor markets and the distribution of income: a. Factor distribution of income b. Marginal

Assignment, price output determination under monopoly explain

price output determination under monopoly explain

Simon satisfying behaviour model, Q. Simon satisfying behaviour model? ...

Q. Simon satisfying behaviour model? The behavioural approach as developed in particular by Richard Cyert and James G. March of the Carnegie School, lays emphasis on explaining

Comparability principle, The comparability principle Associations repre...

The comparability principle Associations representing workers providing services - clerical, postal, teaching, etc. - have always attempted to  apply the "principle of comparab

GAME THOUGH, Given the following payoff matrix (a) indicate the best str...

Given the following payoff matrix (a) indicate the best strategy for each firm (b) why is the entry deterrent threat by firm Ato lower the pruce not credible

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