What is right angled isoquant, Managerial Economics

Assignment Help:

Q. What is Right Angled Isoquant?

This presumes zero substitutability of factors of production. There is just one method of producing any one commodity. In this case, isoquant takes the form of a right angle as in Figure below. 

1914_What is Right Angled Isoquant.png

Right Angled Isoquant

In this case, capital and labour are perfect complements, which is, capital and labour should be used in fixed proportion demonstrated by point C. The output can be increased only by increasing both the quantity of capital and labour in the same proportion depicted at the point C.

This isoquant is known as input-output isoquant or Leontief isoquant after Leontief, who invented input-output analysis.


Related Discussions:- What is right angled isoquant

Direct action, Direct Action Direct action in more than one from has be...

Direct Action Direct action in more than one from has been employed by the central banks either as an alternative to their discount rate policy or open market operations or tog

Wastes of monopolistic competition excess capacity, It indicates the amount...

It indicates the amount of output by that long run output of the firm under monopolistic competition falls short of the Ideal output. This is regarded as wastage in monopolistic co

Cause the equilibrium, a)      The production-possibilities curve is? b)...

a)      The production-possibilities curve is? b)      If there is a shortage in the provider of a product, we can conclude that its price: c)      An enhance in supply and a

What is the advantage of mixed economy system, Benefits are: 1) People...

Benefits are: 1) People can create their own decisions 2) The government has limited control, which is good for arrangement 3) Gives freedoms like Enterprise, ownership,

Theory of comparative advantage, THEORY OF COMPARATIVE ADVANTAGE In hi...

THEORY OF COMPARATIVE ADVANTAGE In his theory put forward in a book published in 1817, David Ricardo argued that what was needed for two countries to engage in international t

Aalbania enjoy a comparative advantage, Refer to above figure. Albania refu...

Refer to above figure. Albania refused to engage in international trade for ideological reasons. To maximize its economic welfare it would choose to produce at which point in the d

Using total expenditure for calculating national income, Using Total Expend...

Using Total Expenditure for Calculating National Income The expenditure approach centres on the components of final demand which generate production.  It thus measures GDP

Real rigidities in the credit market, Real Rigidities in the Credit Market ...

Real Rigidities in the Credit Market How imperfections in the goods markets enable firms  to  set  prices  so  as to  generate  price  rigidities,  e.g.,  because of countercy

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