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

Illustrate internal economies of scale, Q. Illustrate Internal Economies of...

Q. Illustrate Internal Economies of Scale? Internal economies of scale are the benefits of large scale production. They are enjoyed by the firm when it increases its scale of p

Properties of indifference curves, Properties of Indifference Curves ...

Properties of Indifference Curves An indifference curve is usually convex to the origin. Indifference curves slope downwards from left to right. A set

Stakeholders, The following represents the section headers you should consi...

The following represents the section headers you should consider for your reasoned document.   Each section should have (at least) two research citations to support your work :

Short run equilibrium of the firm, SHORT RUN EQUILIBRIUM OF THE FIRM A...

SHORT RUN EQUILIBRIUM OF THE FIRM A firm is in equilibrium when it is maximizing its profits, and can't make bigger profits by altering the price and output level for its prod

Distinguish between moral hazard and adverse selection, Question: i) T...

Question: i) The manager of Top Rock Company is introducing a new product that will yield $200 millions in profits if the economy does not go into recession. However, if a rec

What is demand theory, What is Demand theory: Demand theory relates to ...

What is Demand theory: Demand theory relates to the study of consumer behaviour. It addresses questions like what incites a consumer to buy a particular product, why do consume

Game theory, game theory matrix dominant strategy

game theory matrix dominant strategy

Remedies for unemployment, REMEDIES FOR UNEMPLOYMENT The measures appro...

REMEDIES FOR UNEMPLOYMENT The measures appropriate as remedies for unemployment will clearly depend on the type and cause of unemployment.  Broadly they can be divided into:

BREAK EVEN ANALYSIS, WRITE A NOTE ON BREAK -EVEN ANALYSIS IN PROFIT MANAGEM...

WRITE A NOTE ON BREAK -EVEN ANALYSIS IN PROFIT MANAGEMENT

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