Iso-quant - long period analysis, Microeconomics

Assignment Help:

Iso-quant:

The dots in the above Figure denotes the various combinations of (L, K) that the producer can pick up from form to produce. Among these combinations, there can be those, which produce the same level of output. Herein comes the concept of an iso-quant. An iso-quant is a locus of combinations of (L, K) that produce the same level of output 'q' (see Figure).  

 

2221_Iso-quant.png

 

In the above Figure,  q amount of output can be produced by the input combinations - (L1, K1), (L2, K2), (L3, K3). Joining these, we get an iso-quant, which is also denoted by  q . Therefore, we see that the same level of output  q  can be produced using different techniques - either more K, less L (e.g., technique A), or more L and less K (e.g., technique C).  

 


Related Discussions:- Iso-quant - long period analysis

Find tax revenue, The US government decides to subsidize solar panels. For ...

The US government decides to subsidize solar panels. For each unit sold, the government pays $T to the buyer. Using a graph, show how this subsidy affects i) consumer surplus, ii)

Difficulties in measuring cost, Difficulties in Measuring Cost  1) Outp...

Difficulties in Measuring Cost  1) Output data may represent an aggregate of different type of products.  2) Cost data may not include opportunity cost.   3) Allocating c

Aggregate demand, Aggregate Demand When referred to in the circumstanc...

Aggregate Demand When referred to in the circumstance of GNP or GDP, aggregate demand dealings the sum of what is spent by various parties in the United States for product and

Explain about Growth and development of country, How might one assess if a ...

How might one assess if a country in experiencing both growth and development? This is a matter of explaining clearly both growth and development; growth is an enhance in GDP (

Identify the cases for government intervention in an economy, Problem 1: ...

Problem 1: i) How might unemployment arise? ii) Critically explain how fiscal policy can be used to reduce the unemployment rate in an economy. iii) ‘'Inflation always

Determine the equation for the total market demand, 1.  Moving from an econ...

1.  Moving from an economically inefficient to efficient allocation of resources will necessarily increase benefits by more than costs. 2.  There are two demand curves for a pri

Uses of price and income elasticity of demand, Uses of price and income ela...

Uses of price and income elasticity of demand: The concept of price elasticity of demand has some uses whihc include the following: (i) Pricing of goods and services It is

Demand, factors influencing the conditions of demand for a given product

factors influencing the conditions of demand for a given product

Second Best, What is the theory of second best

What is the theory of second best

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