Isoquant curve is the locus of various combinations of two inputs labor and capital that yield the same level of output. It means every point of an isoquant curve shows an equal level of output. This short article tries to explain the concept of an isoquant curve map or isoquant map. We assume that producers …
Meaning of Iso-quant In the long-run producer can change all the factors and thus output can also be changed by all the factors of production. The level of output that can be produced by different combinations of factors (especially labor and capital) is shown by the iso-quant curve. Isoquant refers to the same quantity. An …
In economics short-run and long-run do not reflect any time period like the concept of short-term and long-term. Economists connect the word short-run as well as long-run or the concept of short-run and long-run with the ability of producers to adjust different factors of production while producing goods and services. Thus, the concept of short-run …
Concept of Optimum Employment of Input Every producer engages in the act of production to earn possible maximum profit by utilizing the available amount of total cost outlay, prices of factors of production, state of technology, governmental policy, and so on. To ensure a maximum profit or to minimize the cost of production, the selection …