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What will be the shape of an isoquant when the elasticity of substitution is infinity?
Wiki User
∙ 11y ago
when the elasticity of substitution is infinity the isoquant will be a straight line sloping downward towards right.
Wiki User
∙ 11y ago
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What if there are no elasticity?
if there is no elasticity means...there will be no deformation in shape and size...and one more thing is if we try to change the shape of the object and no elasticity means the object will break...
What are the types of isoquants in microeconomics?
Linear Isoquant: This type assumes perfect substitutability of factors of production: a given commodity may be produced by using only capital, or only labour, or by an infinite combination of K and L.Input-Output Isoquant: This assumes strict complementarity[that is, zero substitutability] of the factors of production. The isoquant take the shape of a right angle. This type of isoquant is also called 'Leontief isoquant' after Leontief, who invented the input-output ananlysis.Kinked Isoquant: This assmes limited substitutability of K and L. There are only a few processes for producing any one commodity. Substitutability of factors is possibleonly at the kinks. This form is also called 'activity analysis-isoquant' or 'linear-programming isoquant', because it is basically used in linear programming.Smooth , Convex Isoquant: This form assumes continuous substitutability of K and L only over a certain range, beyond which factors cannot substitute each other. The isoquant appears as a smooth curve convex to the origin.
What do you mean by elasticity of a solid?
The elasticity of a solid means the tendency of it to resist deformation & return to it's original shape ie iron is more elastic than a rubber band. Weird isn't it?
What is an explanation of the concept of isoquant?
An isoquant (derived from the Greek word 'iso' means 'equal' and 'quant' means 'quantity') is a contour line drawn through the set of points which consist of different combinations of Labour (L) and Capital (K) at which the same quantity of output is produced by changing the quantities of two or more inputs. In other words, isoquant shows all the input points required to produce same level of output. It represents the combinations of inputs that can produce same quantity of output; producers will be indifferent between them. A higher isoquant refers to a greater quantity of output and a lower one, to a smaller quantity of output. Hence it is also known as "Production indifference curve", or "Equal product curve", or "Isoproduct curve".
What does the word elasticity?
The term inelastic refers to the economic principles of elasticity of supply or demand. Elasticity of demand refers to the rate at which a change in price changes the rate at which consumers demand a product. Elasticity of supply refers to the rate at which a change in price changes the rate at which suppliers are willing to supply a good or service. In most cases elasticity can be calculated by dividing the percent change in supply or demand by the percent change in price. In more advanced cases the calculation of elasticity may require partial derivatives. If elasticity is less than 1, then the price change is inelastic. This means the price change was relatively greater than the change in supply or demand. If demand elasticity is less than 1, a business will generally increase the price of its good or service because it knows it can make more money by charging a hire price even after accounting for the customers it would lose because of the price increase. if elasticity is greater than 1, then the price change is elastic. This means the change in demand or supply is relatively greater than the change in price. if elasticity equals 1, then the price change is unit elastic. This means the change in demand or supply is relatively equal to the change in price. Profit maximizing firms generally charge a price the has a unit elastic demand because charging anymore would mean not profit maximizing because they are losing too many customers and charging any less would mean not maximizing profit due to the price being too low. If elasticity equals 0, then the price change is perfectly inelastic. This means that no matter the price, the demand will always be the same (in the case of demand elasticity) or the supply will always be the same (in the case of supply elasticity). Goods that fall into this category are rarer than the first three categories. A good with a perfectly inelastic demand has to be something that the consumers in the market could not live without (literally or figuratively). Two examples are life saving medical treatments and illegal drugs. If elasticity equals infinity (change in price is 0), then the good is perfectly elastic. In this case, even the slightest change in price sends the demand or supply for a good or service plummeting to 0. An (albeit not perfect) example is bottled water. If a bottled water company changes its price from $1 to $1.05 and another company has the same product still readily available for $1, then demand for the $1.05 water will plummet.
What if there are no elasticity?
if there is no elasticity means...there will be no deformation in shape and size...and one more thing is if we try to change the shape of the object and no elasticity means the object will break...
What are the types of isoquants in microeconomics?
Linear Isoquant: This type assumes perfect substitutability of factors of production: a given commodity may be produced by using only capital, or only labour, or by an infinite combination of K and L.Input-Output Isoquant: This assumes strict complementarity[that is, zero substitutability] of the factors of production. The isoquant take the shape of a right angle. This type of isoquant is also called 'Leontief isoquant' after Leontief, who invented the input-output ananlysis.Kinked Isoquant: This assmes limited substitutability of K and L. There are only a few processes for producing any one commodity. Substitutability of factors is possibleonly at the kinks. This form is also called 'activity analysis-isoquant' or 'linear-programming isoquant', because it is basically used in linear programming.Smooth , Convex Isoquant: This form assumes continuous substitutability of K and L only over a certain range, beyond which factors cannot substitute each other. The isoquant appears as a smooth curve convex to the origin.
Why does a substance return to the shape it started with?
Elasticity!
What term describes the ability of a solid to return to its original shape?
That ability is known as elasticity.
What goes back into its original shape after being stretched?
Elastic or Rubber
What is the difference between elasticity and flexibility?
Elasticity is the ability to stretch and return to the original shape whilst flexibility is the ability to bend.
Does oxygen have elasticity?
No, oxygen is a gas and does not have a solid shape at all.
what is a shape?
The shape or symbol used to denote infinity is a 8 on its side: "∞"
What is a infinte shape?
The shape or symbol used to denote infinity is a 8 on its side: "∞"
Which term describes the ability of a solid to return to its original shape?
elasticity
What is the elasticity of rubber and sponge?
The elasticity of the rubber and sponge refers to the tendency of the rubber or the sponge to return to their original shape after they have been compressed or stretched.
How much sides does the biggest shape have?
infinity. There is no limit
