![]() The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is used to store the user consent for the cookies in the category "Other. ![]() The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly. It is downward sloping because if labor employment is increased then the employment of capital is needed to decrease to keep the same levels of output at every combination of labor and capital. This is because the gain in output from using more units of labor must equal the loss in output from decreasing units of capital and vice-versa. In the curve, points A, B, C, D, and E show different combinations of labor and capital but they produce the same level of output i.e., 80 units. In the figure, IQ is an iso-quant curve that shows equal quantity, 80 units of a commodity throughout its length. Meaning and Derivation of the Iso-quant Curve Thus, the isoquant curve is the locus of different combinations of two inputs labor and capital that ensure the same level of output. It is the graphical representation of the isoquant schedule. The above isoquant schedule can be shown in the following diagram. All those combinations A, B, C, D, and E show the same level of output (800 units). Similarly, combination E shows 2 units of labor and 2 units of capital. Combination B shows 2 units of labor and 8 units of capital. For example, combination A shows one unit of labor and 12 units of capital. It is the tabular presentation of different combinations of labor and capital that show equal levels of output. The above table shows the isoquant schedule. The iso-quant schedule can be defined as the tabular presentation of different combinations of labor and capital that show an equal level of output. ![]() It means that the production function is continuous in nature.īased on the above assumptions, the concept of iso-quant can be explained with help of the following iso-quant schedule. Two inputs (labor and capital) are perfectly divisible in any small quantity.Labour and capital can be substituted for one another at a diminishing rate.There are only two inputs labor and capital to produce a particular commodity.The foundation of the iso-quant curve is based on the following assumptions. Assumptions of Meaning and Derivation of the Iso-quant Curve
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