0
Isocost is the locus of all combinations of factors of production the firm can purchase with a given monetary cost outlay.
Isoquant is the locus of all the technically efficient methods or all the combinations of factors of production for producing a given level of output.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is the difference between isocost and isoquant curve?
All the combination of capital and labour that can be used to produce a given amount of output is called an isoquant.All the combinations of capital and labour that are available for a given cost is called an isocost.
How does the concept of isoquant and isocost in microeconomics can contribute to cost minimization?
rererere
What is the effect of isocost in economics?
effect of isocost
What is the difference between a production function and an isoquant?
A Production function tells you how much output you can produce for every combination of inputs.An Isoquant is a curve that shows all possible combinations of input that yield the same output Example of production function:(Q = output L= Labor K = Capital)Q = K + 5Lfor the isoquant for example, using the production function above, we want to find which levels of input would yield Q = 2020 = K + 5Lif K = 5, then L = 3 and if K = 10, then L = 2, your output would still be the same and that's your isoquant.But for your production function your output can have different values so you'd have multiple isoquant curves and multiple isoquant curves already describe an isoquant map (Isoquant map - shows a number of isoquant curves in a single graph, describing a production function)Hope my explanation wasn't too confusing...
What are the conditions under which an isoquant will not be convex?
Linear isoquant [perfect substitutability of factors of production], Input-output isoquant or Leontif isoquant [no substitution or strict complementarity; only one efficient method of production] are exceptions to isoquant convexity to the origin. Kinked isoquant is of limited substitutability at kinks. But if kinks come closer and closer, it will become a smooth curve, convex to the origin.
What is the difference between isocost and isoquant curve?
All the combination of capital and labour that can be used to produce a given amount of output is called an isoquant.All the combinations of capital and labour that are available for a given cost is called an isocost.
How producers equilibrium is achieved with isoquant and isocost curves?
producers equilibrium is achieved with isoquants and isocost curves
How does the concept of isoquant and isocost in microeconomics can contribute to cost minimization?
rererere
What is the difference between an isocost curve and an isocost line?
the answer
What is iso-quant and iso-cost curve?
Isoquant is the various combination of input for production while isocost is all combination of input which cost same amount.
What is the effect of isocost in economics?
effect of isocost
What is the difference between a production function and an isoquant?
A Production function tells you how much output you can produce for every combination of inputs.An Isoquant is a curve that shows all possible combinations of input that yield the same output Example of production function:(Q = output L= Labor K = Capital)Q = K + 5Lfor the isoquant for example, using the production function above, we want to find which levels of input would yield Q = 2020 = K + 5Lif K = 5, then L = 3 and if K = 10, then L = 2, your output would still be the same and that's your isoquant.But for your production function your output can have different values so you'd have multiple isoquant curves and multiple isoquant curves already describe an isoquant map (Isoquant map - shows a number of isoquant curves in a single graph, describing a production function)Hope my explanation wasn't too confusing...
What are the conditions under which an isoquant will not be convex?
Linear isoquant [perfect substitutability of factors of production], Input-output isoquant or Leontif isoquant [no substitution or strict complementarity; only one efficient method of production] are exceptions to isoquant convexity to the origin. Kinked isoquant is of limited substitutability at kinks. But if kinks come closer and closer, it will become a smooth curve, convex to the origin.
What is the characteristics of isocost?
l Characteristics of isocost curves:Ø An infinite number of isocost curves exist. One for each level of total cost.Ø The slope of the isocost curve is equal to the negative of the relative input price ratio, . This ratio is important because it tells the manager how much capital must be given up if 1 more unit of labor is purchased.
What is isocost?
isocost is really aline that demonstrates the combination of inputs that can be used however each combination has the same cost
What is isoquant and its properties?
isoquant is the locus of the all the combination of two factorof production that yield the same level of the output
What will be the shape of an isoquant when the elasticity of substitution is infinity?
when the elasticity of substitution is infinity the isoquant will be a straight line sloping downward towards right.
