What do you mean by kinked isoquant, Managerial Economics

Assignment Help:

Q. What do you mean by Kinked Isoquant?

This isoquant presumes only limited substitutability of labour andcapital. There are just a few processes for generating any one commodity.

This is demonstrated in Figure below where A1, A2, A3 and A4 represent the production process and Q is the kinked isoquant. In this case O substitutability of factors is possible only at the kinks.

2386_What do you mean by Kinked Isoquant.png

Fig: Kinked Isoquant

This is more realistic kind of isoquant since managers, engineers and production executives consider the production process as a discrete in place of continuous process.


Related Discussions:- What do you mean by kinked isoquant

Market structures, Market Structures This refers to the nature and deg...

Market Structures This refers to the nature and degree of competition within a particular market.  Capitalist economies are characterised by a large range of different market

Types of budgets, TYPES OF BUDGETS 1.     Deficit budget   If th...

TYPES OF BUDGETS 1.     Deficit budget   If the proposed expenditure is greater than the planned revenue from taxation and miscellaneous receipts, this is a budget defic

Phillips curve, PHILLIPS CURVE   The Phillips  curve,  named  after  A....

PHILLIPS CURVE   The Phillips  curve,  named  after  A.  W.  Phillips,  describes  the  relationship between unemployment  and  inflation. In  1958  Phillips, then  professor a

A cost-push inflation , A cost-push inflation have as a result of workers' ...

A cost-push inflation have as a result of workers' attempts to push up their wages. Thus, inflation does not have to be monetary phenomenon." Is this statement true, false, or unce

cost pricing and marginal cost pricing method, Discuss the full cost prici...

Discuss the full cost pricing and marginal cost pricing method. Explain how the two  methods differ from each other.

The monetary account, THE MONETARY ACCOUNT Also called official financ...

THE MONETARY ACCOUNT Also called official financing, this comprises the financial transactions of the government (handled by the central bank) needed to offset any net outflow

How government intervenes to improve allocation of resources, Problem 1: ...

Problem 1: You are the manager of a reputed five star hotel in Mauritius and you have been asked by the director of the hotel to advise on possible pricing strategies to increa

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

Explain the short run production function, Q. Explain the Short run product...

Q. Explain the Short run production function? Discussion of production up to now has ignored the time required to build production facilities. There is a requirement to take in

What do mean by convex isoquant, Q. What do mean by Convex Isoquant? I...

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 te

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