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

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 :

Upper and lower bound, Consider the following table. It shows the market sh...

Consider the following table. It shows the market shares of seven clothing stores (A to G) in five dissimilar cities. a) Calculate the Herfindahl index (?H) for each city.

Determine the concepts of demand, Determine the concepts of demand ...

Determine the concepts of demand Demand always mentions to demand at price. The term 'demand' has no meaning unless it is related to price. For example, the statement, 'the

Income elasticity of demand, Income elasticity of demand The income el...

Income elasticity of demand The income elasticity of demand measures the degree of responsiveness of the quantity demanded of a product to changes in income.  Its co-efficient

Profession, list all profession which generate personal income

list all profession which generate personal income

Ols estimator, The variance of the OLS estimator is VAR( ^B)=σ 2 /ns 2 x ...

The variance of the OLS estimator is VAR( ^B)=σ 2 /ns 2 x , where   s 2 x =£x 2 /x You're hired to estimate   and you're going to be paid according to the accuracy of your esti

Cost parameter, A toy manufacturer makes output according to the production...

A toy manufacturer makes output according to the production function: where n is the number of workers employed by the firm, O is a technological parameter and g the worker

two employees at a yearly rate, A profit-maximizing firm faces the followi...

A profit-maximizing firm faces the following options for hiring workers: a) Assume the firm has limited space so that it can only hire one worker. Which type of employee sh

Demand forecast and sales forecast, Because of the complex and dynamic natu...

Because of the complex and dynamic nature of marketing phenomenon, demand forecasting has become a regular and significant business exercise. It is necessary for profit maximisatio

Calculate the percentage of the disk space that must be free, Free disk spa...

Free disk space can be kept track of using a free list or a bit map. Disk addresses require D bits. For a disk with B blocks, F of which are free, state the condition under which t

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