Get the answer of: What is Isoquant and Isocost Line in Production Theory? A firm's bank objective is profit maximisation. If, in the short run, its total output remains fixed (due to capacity constraint) and if it is a price-taker (i.e., cannot fix the price or change price on its own as in a purely competitive market) its total revenue [...]
The production function shows the relationship between the output of a good and the inputs (factors of production) required to make that good. It usually takes the following general form: Q = f (K, L, t, etc.) Where Q is output, K is capital input, L is labour input, t is 'technology or the art of production' and the term [...]
In this article we will discuss about:- 1. Assumption of Isoquants and the Isoquant Map 2. Characteristics (Properties) of IQs 3. Types. Assumption of Isoquants and the Isoquant Map: For the sake of simplicity, we shall assume that the firm uses only two variable inputs, X and Y, and produces only one output Q. The production function of the firm, [...]