Explain about linear isoquant, Managerial Economics

Assignment Help:

Q. Explain about Linear Isoquant?

: In this case, isoquant would be straight lines as in Figure below. This type presumes perfect substitutability of factors of production. In this case, capital and labour are perfect substitutes, which is, the rate at which labour can be substituted for capital in production is constant.

418_Explain about Linear Isoquant.png

Linear Isoquant

This isoquant evinces that a given commodity can be produced by using only capital or only labour or by an infinite combination of and labour and capital. At point A on the isoquant level of output can be produced with capital alone (which means without labour). In the same way, point B indicates that same level of output can be generated with labour alone (which means without any capital). This is unrealistic since labour and capital aren't perfectly substitutable.


Related Discussions:- Explain about linear isoquant

Illustrate the sources of monopoly, Q. Illustrate the sources of monopoly? ...

Q. Illustrate the sources of monopoly? Merger for Large-scale Production: Thirdly monopoly undertaking can be a consequence of the necessity to produce on a large scale to de

General and selective credit control, General and Selective Credit Control ...

General and Selective Credit Control These are imposed with the full apparatus of the law or informally using specific instructions to banks and other institutions.  For insta

Low fidelity prototyping technique, You have recently gained employment wit...

You have recently gained employment with a computer consultancy company. Due to your specialist knowledge in the areas of Human Factors and usability, your manager considers that y

Limitations, limitations of managerial ecomomics

limitations of managerial ecomomics

Aggregate demand, AGGREGATE DEMAND This refers to the total planned or...

AGGREGATE DEMAND This refers to the total planned or desired spending in the economy as a whole in a given period. It is made up of consumption demand by individuals, planned

Models of the firm, discuss the validity in zimbabwe of the grounds on whic...

discuss the validity in zimbabwe of the grounds on which the profit maximising model of the firm has been defended

Supplementary reserve, Supplementary Reserve, Requirements/Special Deposit ...

Supplementary Reserve, Requirements/Special Deposit If the Central Bank feels that there is too much money in circulation, it can in addition require commercial banks to mainta

Price elasticity and consumption expenditure, Another vital relationship th...

Another vital relationship that is often referred to in economic analysis is the relationship between consumption expenditure andprice elasticity. From the law of demand, we know t

PRODUCTION THEORY, Q=5K0.4 L0.6 WHERE K is number of mchine,L s number of l...

Q=5K0.4 L0.6 WHERE K is number of mchine,L s number of labour, price of unit is RM24 & wages og each lanour rm12. the company constraint by it budget rm 1500 per time period. a) co

State about demand theory, What is Demand theory Demand theory demonstr...

What is Demand theory Demand theory demonstrates the relationship between demand for services andgoods. Demand theory is the building block of demand curve- a curve which estab

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