Search results
Isoquant curve
semanticscholar.org
- An isoquant curve is a line on a graph that charts all the combinations of inputs that produce a specified level of output. Such a graph is used to illustrate the relative influence that inputs—most commonly capital and labor—have on the obtainable level of output or production.
www.investopedia.com/terms/i/isoquantcurve.aspIsoquant Curve in Economics Explained: Properties and Formula
Interactive graphs and explanations about key economic concepts for use in teaching and exploring Graphs & Explanations | Textbooks | About | Usage Graphs and Explanations
- Short-Run Fluctuations As-Ad, Phillips Curve, Keynesian Cross, Business Cycles 2 Graphs
The Expenditure-Output (Keynesian Cross) Model. Graphs....
- The PPF Model
Solutions at the Kink in an Indifference Curve; General...
- Market Power
First-Degree Price Discrimination (new) First-Degree Price...
- Consumer Theory
Utility Maximization and Offer Curves for Different Utility...
- Finance
Coin Toss Example: Possible Outcomes; Coin Toss Example:...
- Mathematical Concepts
Elasticity along a Linear Demand Curve; Elasticity along a...
- Intermediate Microeconomics
Part III: The Theory of the Firm 11 . Production and Cost
- Exhange and The Edgeworth Box
The Contract Curve; The Contract Curve with Perfect...
- Short-Run Fluctuations As-Ad, Phillips Curve, Keynesian Cross, Business Cycles 2 Graphs
- What Is An Isoquant curve?
- Understanding An Isoquant Curve
- Isoquant Curve vs. Indifference Curve
- The Properties of An Isoquant Curve
- How Isoquant Is Calculated
- The Bottom Line
An isoquant curve is a line on a graph that charts all the combinations of inputs that produce a specified level of output. Such a graph is used to illustrate the relative influence that inputs—most commonly capital and labor—have on the obtainable level of output or production. The isoquant curve assists companies and businesses in making adjustme...
The isoquant curve represents the various combinations of input that produce a set amount of output. The isoquant is known, alternatively, as an equal product curve or a production indifference curve. It may also be called an iso-product curve. Most typically, an isoquant shows combinations of capital and labor, and the technological tradeoff betwe...
The isoquant curve is in a sense the flip side of another microeconomic measure, the indifference curve. The mapping of the isoquant curve addresses cost-minimization problems for producers: the best way to manufacture goods. The indifference curve, on the other hand, measures the optimal ways consumers use goods. It attempts to analyze consumer be...
Property 1: An isoquant curve slopes downward, or is negatively sloped.
This means that the same level of production only occurs when increasing units of input are offset with lesser units of another input factor. This property falls in line with the principle of the marginal rate of technical substitution (MRTS). As an example, the same level of output could be achieved by a company when capital inputs increase, but labor inputs decrease.
Property 2: An isoquant curve, because of the MRTS effect, is convex to its origin.
This indicates that factors of production may be substituted with one another. The increase in one factor, however, must still be used in conjunction with the decrease of another input factor.
Property 3: Isoquant curves cannot be tangent or intersect one another.
Curves that intersect are incorrect and produce results that are invalid, as a common factor combination on each of the curves will reveal the same level of output, which is not possible.
To calculate an isoquant, you use the formula for the marginal rate of technical substitution (MRTS): MRTS(L, K)=−ΔKΔL=MPLMPKwhere:K=CapitalL=LaborMP=Marginal products of each inputΔKΔL=Amount of capital that can be reducedwhen labor is increased (typically by one unit)\begin{aligned} &\text{MRTS(\textit{L}, \textit{K})} = - \frac{ \Delta K }{ \Del...
The isoquant curve is a sloping line on a graph that shows all of the various combinations of the two inputs that result in the same amount of output. It's a microeconomic metric that businesses use to adjust the relative amounts of capital and labor they need to keep production steady. It is also used to determine how to maximize profits and minim...
- Will Kenton
Jun 2, 2018 · Big. Clear. Develop your diagrams! Simply drawing a diagram from memory will likely only allow you to gain AO1 marks. To be able to access higher-skill marks, you will need to make a change or adapt your diagram. Perhaps shift a curve, indicate a particular important area and so on.
•The Fed can use Monetary Policy to shift AD right or left. •AS can shift because of changes in productivity, costs of inputs, or supply shocks. •The LRAS can shift based on anything that would move the production possibilities curve (see micro)
Learning Objectives. Understand how graphs show the relationship between two or more variables and explain how a graph elucidates the nature of the relationship. Define the slope of a curve. Distinguish between a movement along a curve, a shift in a curve, and a rotation in a curve.
Learning Objectives. Understand how graphs show the relationship between two or more variables and explain how a graph elucidates the nature of the relationship. Define the slope of a curve. Distinguish between a movement along a curve, a shift in a curve, and a rotation in a curve.
Linear relationship is a relationship that graphs as a straight line. A non-linear relationship graphs as a curve, which may take various shapes. (1) Explaining the Rate of Increase/Decrease. The graph in Figure 1.6 shows a positive (direct) relationship, which is becoming weaker (less steep).
