Fig.104Isoquantcurve.Theisoquantcurveandisocostline. acurvethatshowsthevaryingcombinationsofFACTORS OF PRODUCTIONsuchaslabourandcapitalthatcanbeusedtoproduceagivenquantityof aproductwithagivenstateoftechnology(whereFACTOR INPUTScanbesubstitutedforoneanotherintheproductionprocess).SeeFig.104. ...
Both isocosts and isoquants are curves plotted on a graph. Used by producers and manufacturers, they display the best interplay of two factors that will result in the maximum output at minimum cost. An isoquant shows all combinations of factors that produce a certain output. An isocost show ...
For a function f(x), the graph or contour f(x) = C, where C is a constant, is called an isoquant. If f(x) is a profit (cost) function, then the isoquant is termed an isoprofit (isocost) line.This is a preview of subscription content, log in via an institution to check ...
AnswerisamountofmoneyasfunctionofQ Isocostline,I:{x|I=p 1 x 1 +p 2 x 2 } Straightline InterceptI/p 2 Slope-p 1 /p 2 ProblemAgain Giventhatwewanttoproduceon isoquantQ*,whichtechniqueonQ* shouldwechoose? Answer:ThetechniqueonQ*thatison thelowestpossibleisocostline Thegraph:Q*isoquantand...
Isoclines are lines which ‘join up’ the differentproduction regions. Having defined and decided the optimal levels of K and L we need to produce the different quantities, the line that passes through these optimal levels is an isocline (cyan). In other words, it is the line that joins...
Isoquant (redirected fromIsoquants) On a chart, a line or curve representing identical outputs when one changes one of two inputs. Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved Want to thank TFD for its existence?Tell a friend about us, add a link to this page,...