Show the properties of isoquants, Managerial Economics

Assignment Help:

Q. Show the Properties of isoquants?

Isoquants slope downwards to the right:  It means that, in order to keep output constant; when amount of one factor is increased then the quantity of other factor should be decreased.

An upward sloping isoquant illustrates that a given product can be produced with less of both the factors of production. An entrepreneur, who is maximising profits, wouldn't use any combinations of factors exposed on an upward sloping portion of an isoquant. Thus the points on the upward sloping portion of an isoquant can't represent an equilibrium position. In the same way, a horizontal or vertical range of an isoquant cannot also represent a possible position of equilibrium. In this circumstance, the same output could be attained at a reduced cost by decreasing the amount of one of the factors. So isoquants slope downwards to the right as in figure below.

2407_Show the Properties of isoquants.png

Figure: Isoquant sloping downwards


Related Discussions:- Show the properties of isoquants

Define managerial economics according to mcnair and meriam, Define Manageri...

Define Managerial economics according to McNair and Meriam McNair and Meriam:  "Managerial economics comprises the use of economic modes of thought to analyse business situatio

Costs of economic growth, Costs of Economic Growth (Increase in National In...

Costs of Economic Growth (Increase in National Income) 1.     People living in industrial towns suffer from the effects of a polluted atmosphere. 2.     The manufacture of

Demand forecast and sales forecast, Because of the complex and dynamic natu...

Because of the complex and dynamic nature of marketing phenomenon, demand forecasting has become a regular and significant business exercise. It is necessary for profit maximisatio

Elasticity of demand, a bus operates two routes,one to harare and another o...

a bus operates two routes,one to harare and another one to johanesburg.the company analyst estimated that the elasticity of demand for joburg is 0.9 while for harare is 2.the compa

Profession, list all profession which generate personal income

list all profession which generate personal income

Utility, Utility Utility is the amount of satisfaction derived from th...

Utility Utility is the amount of satisfaction derived from the consumption of a commodity or service at a particular time.  Utility is not inherent but a psychological satisfa

Marijuana, Plot the demand schedule and draw the demand curve for the data ...

Plot the demand schedule and draw the demand curve for the data given for Marijuana in the case above.

Structural unemployment - reason for protection, Structural Unemployment ...

Structural Unemployment The decline of the highly localized industry due to international trade causes great problems of regional (structural) unemployment.  If it would take

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