Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. What do mean by Convex Isoquant?
Isoquants are convex to the origin:At any point of an isoquant,the slope is negative. Its numerical value measures the marginal rate of technical substitution between capital and labour. It equals the ratio of marginal product of labour to marginal product of capital. So the slope of an isoquant is
Where ΔK is the change in capital and ΔL is the change in labour, MRTSLK is the marginal rate of technical substitution of labour for capital, MPL is the marginal product of labour and MPK is the marginal product of capital. Convexity of isoquant means that as we move down the curve then less and less of capital is given up for an extra unit of labour so as to keep constant the level of output. This can be observed from the Figurebelow.
Figure: Convex Isoquant
It can be seen from the figure above that as we increase labour at a constant rate, amount of capital given up (ΔK) for an extra unit of labour goes on falling. So the convexity of isoquant demonstrates that marginal rate of technical substitution of labour for capital is diminishing.
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.
Q. Construction of an explanatory model? Construction of a sample: To apply multiple regression a large sample is generally essential (ideally between 2,000 to 15,000 indivi
A firm hires two risk-neutral workers to assemble bicycles and pays $20 for each assembly.Charlie's marginal cost of allocating effort (measured in dollars) to the production proce
Number 1 work: Week 4 Discussion - Empirical Demand Function and Forecasting The empirical demand function can be used in conjunction with historical data to predict pricing and
Nature and Functions of Money The concept of money is very difficult to define . it is belongs to the category of things which are not amenable to any single definition. It is p
A mother is torn among choosing her son Leonardo and her daughter Meryl to have the last bar of chocolate in her cupboard. As both her children's needs the chocolate and she needs
National Income National Income is a measure of the money value of goods and services becoming available to a nation from economic activities. It can also be defined as the to
Legal Sanction: A monopoly as stated above may be the result of a government sanction. The government of a country may legally permit a private monopoly or monopoly in the public s
A firm in a perfectly competitive market invents a new situation of production that lowers its marginal costs. What happens to its output? What happens to the price it charges?
Advantages of the Mixed Economy Necessary services are provided in a true market economy, services which were not able to make profit would not be provided. Incentive: Sin
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd