Iso-quant - long period analysis, Microeconomics

Assignment Help:

Iso-quant:

The dots in the above Figure denotes the various combinations of (L, K) that the producer can pick up from form to produce. Among these combinations, there can be those, which produce the same level of output. Herein comes the concept of an iso-quant. An iso-quant is a locus of combinations of (L, K) that produce the same level of output 'q' (see Figure).  

 

2221_Iso-quant.png

 

In the above Figure,  q amount of output can be produced by the input combinations - (L1, K1), (L2, K2), (L3, K3). Joining these, we get an iso-quant, which is also denoted by  q . Therefore, we see that the same level of output  q  can be produced using different techniques - either more K, less L (e.g., technique A), or more L and less K (e.g., technique C).  

 


Related Discussions:- Iso-quant - long period analysis

What are the properties of the profit function, What are the properties of ...

What are the properties of the profit function? Properties of the Profit Function: The properties specified below follow solely by the assumption of profit maximization. No

Implementation of economic policy, Implementation of economic policy: ...

Implementation of economic policy: On the ability of civil servants and Government to learn, Government must possess the following qualities to ensure implementation of econom

Define the post-communism policy, Policy: Post-Communism Demolition of ...

Policy: Post-Communism Demolition of the Berlin Wall and take-down of the Iron Curtain hasn't significantly improved the situation in what are optimistically and euphemisticall

What is yuen’s profit function, Yuen, a travelling salesman for snake oil, ...

Yuen, a travelling salesman for snake oil, can produce the stuff at a marginal cost of 1. There are 100 potential customers in Vernon, each of whom has the following demand functio

Rational expectations and economic theory , RATIONAL EXPECTATIONS AND ECONO...

RATIONAL EXPECTATIONS AND ECONOMIC THEORY : We assumed above that the role of economic theory is not to provide quantitative predictions about the future. Suppose we assume ins

Revealed preference theory, Comparison of sameulson revealed preference the...

Comparison of sameulson revealed preference theory with the Hicksian revealed preference theoru

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