Isoquants, Microeconomics

Isoquants

* Assumptions

- Food producer has 2 inputs

  • Labor (L) & Capital (K)

* Observations:

 1) For any level of K, output increases with L.

 2) For any level of L, output increases with K.

 3) Various combinations of inputs produce same output.

Isoquants

- Curves which is showing all the possible combinations of inputs which yield the same output

  Production Function for Food

1266_isoquants.png

  Production with the Two Variable Inputs (L,K)

 
2037_isoquants1.png

Input Flexibility

- The isoquants stress that how different input combinations can be used to produce same output.

- This information allows producer to respond efficiently to changes in markets for inputs. 

Posted Date: 10/10/2012 9:17:29 AM | Location : United States







Related Discussions:- Isoquants, Assignment Help, Ask Question on Isoquants, Get Answer, Expert's Help, Isoquants Discussions

Write discussion on Isoquants
Your posts are moderated
Related Questions
Discuss about Modern economic growth Modern economic growth is also a shift in the kinds of things we do at work and play and in the way we live. Back in immediate aftermath of

price quantity 10 60 20 70 30 90 40 110 50 130 derived a supply function for the relation between price and quantity

About four years ago, Kanye West performed at the UIC Pavilion. General admission tickets were priced at $30. Concert promoters say that price elasticity of demand for general admi

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 1. Suppose that the


Question Suppose you work for the state government of California. Due to the heavy traffic jam on I-880, the state has decided to decide to construct a new highway. To fund a p

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

Institutionalist Economics: A school of heterodox economicsthat emphasizes importance of institutional development and evolution (as opposed to ‘pure' market forces) in explaining

Question: (a) With reference to the characteristics of market structure, describe why the market for powdered milk in Mauritius is an appropriate example of monopolistic compe

Question : (a) Differentiate between the characteristics of a perfectly competitive market and those of a monopoly market structure. (b) To what extent is a monopoly mark