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

Law of diminishing marginal utility, law of diminishing marginal utility it...

law of diminishing marginal utility its assumptions, limitation, and its practical importance

Inflation-unemployment trade-off under rational expectations, Inflation-Une...

Inflation-Unemployment Trade-off under Rational Expectations : Robert Lucas (1972) pointed out another implication of the above hypothesis of adaptive expectations. Suppose in

Bls classify people who are not in the labor force, How does the BLS classi...

How does the BLS classify people who are "not in the labor force," and what people are often in this category?  If an individual surveyed (that is, who is age 16 or over and no

Joy Land Toys, I need help with a question that has been posted on here alr...

I need help with a question that has been posted on here already.

Factors determine the price elasticity of supply, Factors determine the pri...

Factors determine the price elasticity of supply: The price elasticity of supply varies widely across different products. Some products have more leastic supply, while others

Infrastructure , Infrastructure : Infrastructure plays an important ro...

Infrastructure : Infrastructure plays an important role in the development of an economy. The adequacy or lack of it determines an economy's success or failure in increasing p

Money multiplier, The Money Multiplier is explained below: If you see c...

The Money Multiplier is explained below: If you see carefully, the money multiplier is nothing but an inverse of a reserve ratio. Therefore, we can write MM = 1/rr, where rr is

Rent, quasi rent theory

quasi rent theory

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