Slope of an iso-quant, Microeconomics

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.  

Posted Date: 10/26/2012 6:34:04 AM | Location : United States







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

Write discussion on Slope of an iso-quant
Your posts are moderated
Related Questions
if a country is managing its exchange rate what will do to counteract the effect of stock market bubble in this country? explain what central bank will do and show in supply and de

Protection against dumping: It could be looked at as the export of commodities priced below cost of production. Dumping is generally looked upon as an unfair trading practice

IN THE LABORATORY OXYGEN IS PRODUCED BY HEATING POTASSIUM CHLORATE ACCORDING TO THE EQUATION 2KCLO3-2KCL+3O2. WHEN 298g OF KCLO3 IS HEATED IT GAVE 181.2g OF OXYGEN. GIVEN THAT 32g

Problem: i) The  inverse market demand curve for a Stackelberg leader and follower is given by  P = 10  - Q. If each has  a marginal cost of $4, what will be the equilibrium qu

(i) How do we measure economic growth and why do we need economic growth? (ii) What can governments do to stimulate economic growth and create jobs? (provide some current exampl

prove that marginal utility of x=the price of commodity x.

Which of the following is a free good? Fresh water, forests in the northwestern United States, the advice of economists, or none of the above?

calculate point elasticity of demand function Q=10-2p for decrease in price from Rs3 to Rs2

Participation in Global System of Production: As national economies are getting more inter-linked, the share of foreign components in most manufactured products is progressiv