Slope of an iso-quant, Microeconomics

Assignment Help:

Slope of an Iso-quant:

Since along an iso-quant the level of output remains the same, if θL units of θL are substituted for K units of K, the increase in output due to θ L units θ L (namely, θ L.MPL) should match the decrease in output due to a decrease of K units of K (namely θ K.MPK). In other words,  

1379_Slope of an Iso-quant.png

when  is a very small amount we can write 2323_Slope of an Iso-quant1.png. In the K - L input space, dK/dL represents the slope of the iso-quant at any point on it. 

θ Slope of the iso-quant 849_Slope of an Iso-quant2.png

The absolute value of dK/dL, denoted by |dK/dL| is known as the marginal rate of technical substitution of L for K. (MRTSLK). By definition, it measures the reduction in one input per unit increase in the other that is just sufficient to maintain a constant level of output. It is equal to the ratio of the marginal product of L to the marginal product of K.  


Related Discussions:- Slope of an iso-quant

Role of money in a modern economic system, Normal 0 false fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Economics, 4) The prevention of major swings in economic activity can be ha...

4) The prevention of major swings in economic activity can be handled most easily by the A. household sector B. business sector C. financial sector D. government sector Explain

Marketing economies, Marketing Economies: These are derived from the ...

Marketing Economies: These are derived from the bulk purchasing of inputs and bulk distribution of outputs. A large firm is able to buy its raw materials in larger quantities

Applied Economics Homework Need Answers, Florida citrus mutual, an agricult...

Florida citrus mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the

Theory of monopolistic competition, The very name of this market type sugge...

The very name of this market type suggests that it is a combination of the monopoly and competitive firms. The characteristics of such a market are: 1. There exists large n

MRTS & MRS, What is the difference between MRTS & MRS?

What is the difference between MRTS & MRS?

Assignment, state the law of downward sloping demand

state the law of downward sloping demand

Detenninants of foreignstrategy towards fdi, Instructions to Students 1...

Instructions to Students 1. Answer all the questions, using economic models where appropriate. Begin a question on a new page. 2. Please attach a copy of the assignment cove

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