Curvature of the iso-quant, Microeconomics

Curvature of the Iso-quant:

An iso-qunat is convex to the origin. This is so because as more and more units labour are employed, the producer would prefer to give up less and less of the other input to produce the same amount of output. This is shown in the following Figure:  

 

272_Curvature of the Iso-quant.png

For a rise in L from L1 to L2, the producer gives up K1 amount of K. For the same output level  q, as L increases from L3 to L4, she gives up K2 amount of K. As K2 < K1, it implies that for more units of L, the producer is willing to give up less of K. A convex iso-quant implies a diminishing MRTSLK. As   MRTSLK = MPi/MPk, a diminishing MRTS means as L increases, L MP  decreases and MPK increases.  

Posted Date: 10/26/2012 6:46:31 AM | Location : United States







Related Discussions:- Curvature of the iso-quant, Assignment Help, Ask Question on Curvature of the iso-quant, Get Answer, Expert's Help, Curvature of the iso-quant Discussions

Write discussion on Curvature of the iso-quant
Your posts are moderated
Related Questions
A farmer produces maize according to the following production function Q m = AK 1/3 L 2/3 Where Q m is output of maize, A = land, K = capital and L = labour Given that

Fill in the column of marginal products. What pattern do you see? How might you explain it? b. A worker costs $30 per day and the ''Firm has fixed costs of $10. Use this informat

what is micro economics


Ask question #Minimum 100 areanycurrentsubsidyorwelfareissueddiscussedoraddressedinparliamentwords accepted#


if the price of labour is 2000 per hour and the price of capital is 1000 per hour.is there an efficiency point of production.

You are tasked with evaluating a project for reducing nutrient (nitrogen and phosphorus) loading into the Gulf of Mexico (GOM). These nutrients make their way into the GOM by way o

How does the PED and PES of commodities affect producers in developing countries? Explanation of PED (formulaic) Definition of PED outlining commodities as having lo

GOOD GOVERNANCE TO ENSURE IMPLEMENTATION OF ECONOMIC POLICY:  Government is very sensitive to the expectation of the people and sincere efforts in this direction have already