What is right angled isoquant, Managerial Economics

Assignment Help:

Q. What is Right Angled Isoquant?

This presumes zero substitutability of factors of production. There is just one method of producing any one commodity. In this case, isoquant takes the form of a right angle as in Figure below. 

1914_What is Right Angled Isoquant.png

Right Angled Isoquant

In this case, capital and labour are perfect complements, which is, capital and labour should be used in fixed proportion demonstrated by point C. The output can be increased only by increasing both the quantity of capital and labour in the same proportion depicted at the point C.

This isoquant is known as input-output isoquant or Leontief isoquant after Leontief, who invented input-output analysis.


Related Discussions:- What is right angled isoquant

Explain the short run production function, Q. Explain the Short run product...

Q. Explain the Short run production function? Discussion of production up to now has ignored the time required to build production facilities. There is a requirement to take in

Cross elasticity, Cross Elasticity Cross elasticity of demand measures...

Cross Elasticity Cross elasticity of demand measures the degree of responsiveness of the quantity demanded of one good (B) to changes in the price of another good (A).  It is

Supply and demand, Discuss some of the effects of the economic downturn on ...

Discuss some of the effects of the economic downturn on supply, demand, inferior goods, complimentary goods, substitute goods, and price. words accepted#

Digressive tax, DIGRESSIVE TAX A tax is called digressive when the hig...

DIGRESSIVE TAX A tax is called digressive when the higher incomes do not make a due contribution or when the burden imposed on them is relatively less. Another way in which

Can identity economics explain some patterns , Can identity economics expla...

Can identity economics explain some patterns observed in the Australian economy

Microeconomic objectives of government, The Microeconomic objectives of gov...

The Microeconomic objectives of government These are the policies which are concerned with the allocation and distribution of resources to maximize social welfare. 1. Allo

BREAK EVEN ANALYSIS, WRITE A NOTE ON BREAK -EVEN ANALYSIS IN PROFIT MANAGEM...

WRITE A NOTE ON BREAK -EVEN ANALYSIS IN PROFIT MANAGEMENT

Average total costs (atc), Average Total Costs (ATC) This is total cos...

Average Total Costs (ATC) This is total cost per unit of output, obtained by dividing total cost by total output i.e. ATC   =   Total Cost              Total Outp

Keynes theory , Keynes Theory Keynes views about trade cycle entitled ...

Keynes Theory Keynes views about trade cycle entitled notes on the trade cycle of his classic the general theory of employment interest and money published in 1936. Although K

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