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

What is the socially optimal market price, Consider a manufactured good who...

Consider a manufactured good whose production process generates pollution. The annual demand for the good is given by Qd=100-3P. The annual market supply is given by Qs=P. In both

What is risk and production analysis, What is Risk and Production analysis ...

What is Risk and Production analysis Risk analysis:  Various models are used to quantify risk and asymmetric information and to employ them in decision rules to manage risk.

Implications for the shape of cost function, Q. Implications for the shape ...

Q. Implications for the shape of cost function? A cost function is also a mathematical relationship, one which relates the expenses an organisation incurs on the quantity of ou

Advantages of progressive tax, Advantages a.           It is more equi...

Advantages a.           It is more equitable.  The broader shoulders are asked to carry the heavier burden. b.          It satisfies the canon of productivity as it yields

Estimating economic relationships, Estimating economic relationships M...

Estimating economic relationships Managerial economics estimates economic relationships between various business factors likeelasticity of demand, income, profit analysis, cos

Characteristics of the three stages of diminishing returns, CHARACTERISTICS...

CHARACTERISTICS OF THE THREE STAGES   Stage I Here the Total Physical Product, Average Physical Product and Marginal Physical Product are all increasing.  However MPP

Oligopoly, Explain the classification of oligopoly?

Explain the classification of oligopoly?

Calculate the equilibrium level of national income, Question: EITHER ...

Question: EITHER Nowadays, there is an urgency in Mauritius to introduce a rapid transit system in order to reduce traffic congestion and shift towards a more efficient mode

Review, # review of Article what can economic theory contribute to manageri...

# review of Article what can economic theory contribute to managerial economic#

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