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

Equilibrium and disequilibrium in balance of payments, Equilibrium and Dise...

Equilibrium and Disequilibrium in the Balance of Payments If on the current account , the value of exports is equal to the value of imports, the balance of payments is said t

Borrowing facilities internationally, Borrowing Facilities If a countr...

Borrowing Facilities If a country's currency is not convertible, it can borrow from countries whose currencies are convertible and use the convertible currencies to make its i

Scarcity and oppurtunity cost, define scarcity and oppurtunity cost.show ho...

define scarcity and oppurtunity cost.show how these concepts are useful in managerial decision making

Managerial economics, Suppose that the government is the only provider of w...

Suppose that the government is the only provider of water. The market demand function reads D: Q(P) = 50 - 2P. The government''s total cost for producing water are described as fol

Transitional unemployment, Transitional unemployment Transitional unem...

Transitional unemployment Transitional unemployment is that situation which prevails due to some temporary reasons.  The main reason for this type of unemployment are:

Explain about labour economies, Q. Explain about Labour Economies? Lab...

Q. Explain about Labour Economies? Labour Economies: As the size of output increases the firm enjoys labour economies because of (a) specialisation, (b) time-saving (c) autom

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