Isocost Isocost v. Isoquant Graph In economics an isocost line shows all combinations of inputs which cost the same total amount. Although similar to the budget constraint in consumer theory, the use of the isocost line pertains to cost-minimization in production, as opposed to utility-maximizati...
Explain graphically how isoquant-isocost analysis can be used to derive long-run labor demand curve. Distinguish between the substitution and output effects. Isoquant: Isoquant shows the relationship between two or more inputs t...
RegisterLog in Sign up with one click: Facebook Twitter Google Share on Facebook isocost line a line showing combinations ofFACTOR INPUTSthat can be purchased for the same total money outlay. SeeISOQUANT CURVE. Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies ...
IsocostIsocostv.IsoquantGraphIneconomicsanisocostlineshowsallcombinationsofinputswhichcostthesametotalamount.Althoughsimilartothebudgetconstraintinconsumertheory,theuseoftheisocostlinepertainstocost-minimizationinproduction,asopposedtoutility-maximization.Forthetwoproductioninputslabourandcapital,withfixedunitcostsofthe...
Isoquant Graph In economics an isocost line shows all combinations of inputs which cost the same total amount. Although similar to the budget constraint in consumer theory, the use of the isocost line pertains to cost-minimization in production, as opposed to utility-maximization. For the two ...