Isoquants, Microeconomics

Assignment Help:

Isoquants

* Assumptions

- Food producer has 2 inputs

  • Labor (L) & Capital (K)

* Observations:

 1) For any level of K, output increases with L.

 2) For any level of L, output increases with K.

 3) Various combinations of inputs produce same output.

Isoquants

- Curves which is showing all the possible combinations of inputs which yield the same output

  Production Function for Food

1266_isoquants.png

  Production with the Two Variable Inputs (L,K)

 
2037_isoquants1.png

Input Flexibility

- The isoquants stress that how different input combinations can be used to produce same output.

- This information allows producer to respond efficiently to changes in markets for inputs. 


Related Discussions:- Isoquants

Basics of theory of demand, Basics of Theory of demand: The most famou...

Basics of Theory of demand: The most famous approach in the history of consumer behaviour, after indifference curve approach, is the revealed preference approach. In the revea

Simple inventory model, Simple Inventory Model  Firstly, the product l...

Simple Inventory Model  Firstly, the product level initiates a demand, which generates a demand at the component level and then in turn at the raw material level. Think of an

Expenditure trends and pattern, Expenditure Trends and Pattern: Total ...

Expenditure Trends and Pattern: Total expenditure of the Centre has risen twice as fast as total revenue, although much of this reflects rising interest payments. Revenue expe

Marginal utility theory, discuss whether marginal utility is a realistic pi...

discuss whether marginal utility is a realistic piece of economy analysis in a consumer demand

Define the effects of monopoly, There are various implications of the monop...

There are various implications of the monopoly model; many of which lead to criticisms of monopoly on issues of both technical /allocative efficiency.  The prices and output verifi

Market systems, what is a perfect competition and how does it differ from m...

what is a perfect competition and how does it differ from monopoly?

Cost push or supply inflation, Cost Push or Supply Inflation: It is a...

Cost Push or Supply Inflation: It is a situation where the process of increasing price level is caused by increasing costs of production which push up prices. Cost push infla

Production , Suppose that a firm’s production function is given by Q=30L-3L...

Suppose that a firm’s production function is given by Q=30L-3L2, where L is labor input and Q is the output. a) Derive and draw the firm’s demand for labor while the firm’s produ

Partial input elasticity of output, Partial Input Elasticity of Output:   ...

Partial Input Elasticity of Output:   This is a short-run concept which deals with the variability of only one factor keeping the others constant. There are three kinds of retu

Classical model , Money market, labour market, goods market

Money market, labour market, goods market

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