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

Per capita income and international comparisons, PER CAPITA INCOME AND INTE...

PER CAPITA INCOME AND INTERNATIONAL COMPARISONS Per capita income figures can also be used to compare the standards of living of different countries. Thus if the per capita in

Proportion of market supplied - determinants of demand, Q. Proportion of Ma...

Q. Proportion of Market Supplied - Determinants of Demand? Price elasticity of market demand moreover relies on the proportion of market supplied at the determined price. If le

Elasticity of demand, When given two demand functions to calculate elastici...

When given two demand functions to calculate elasticity of demand do you use point elasticity or arc elasticity of demand formula

Explain about long run production function, Q. Explain about Long run produ...

Q. Explain about Long run production function? Long run is a phase adequately long so that all factors together with capital can be changed. The factors that can be increase

Mixed economy, The Mixed Economy There are no economies in the world w...

The Mixed Economy There are no economies in the world which are entirely 'market' or planned, all will contain elements of both systems. The degree of mix in any one econom

Measuring point elasticity on a linear demand curve, Measuring Point Elasti...

Measuring Point Elasticity on a Linear Demand Curve To explain the measurement of point elasticity of a linear demand curve, let's suppose that a linear demand curve is given b

Ramsey pricing in detail, Hi Could you please help me with " Ramsey pricing...

Hi Could you please help me with " Ramsey pricing in detail " as I have an assignment.

Monetary theory, Monetary Theory We have seen that Schumpeter theory wh...

Monetary Theory We have seen that Schumpeter theory which runs in terms of innovations and technical change, is at best an incomplete explanation of trade cycle . there are eco

Marris’ Growth Maximisation Model, #question.Constraints of Marris’ Growth...

#question.Constraints of Marris’ Growth Maximisation Model

What is production and cost function, Q. What is Production and Cost Functi...

Q. What is Production and Cost Function? Production functions and cost functions are the keystones of managerial and business economics. A production function is a mathematical

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