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 […]
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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
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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
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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
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There are different definitions of microeconomics given by different economists and the common matter of almost all the definitions is that microeconomics refers to the study of economic behaviors of very small and individual units of an entire economy. Thus, first microeconomics divides the entire economy into several small parts and then studies each part
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Introduction The price given by the final purchasers of the consumer as well as capital goods is known as the market price. If we determine the values of different concepts of national income at prevalent prices of goods and services, then the concepts are said to be measured at market price. Here we try to
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Meaning of National Income In this article, we explain the meaning and features of national income. You will know what national income actually is and what it measures. Meaning and Features of National Income The human resources of a nation combinedly working with capital and natural resources produce annually various quantities of goods and services.
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In this article, we explain the major properties of the Cobb-Douglas production function Introduction to Cobb Douglas Production Function The Cobb-Douglas production function is an empirical production function developed by Charles W. Cobb (American Mathematician) and Paul H. Douglas (American Economist) based on empirical studies of various manufacturing industries of the USA. This production function
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Meaning of Stock Variables A stock can be defined as an amount determined at a particular point in time. On August 1, 2020, there may be Rs. 20,000 in your bank account. On August 10, 2020, there may be Rs. 25,000 in your bank account. All such values are stock values, as these are measured
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Resource allocation plays a vital role in solving economic optimization problems. The productive resources like land, labor, capital, equipment, technology, etc. are inadequately available. Due to the inadequate availability of resources, the issue of resource allocation becomes serious. Resource allocation can be defined as the distribution of resources (human, financial, and natural resources) for various
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