Isoquant Curve
The term Isoquant has two terms, Iso meaning is equal, quant is quantity. Therefore, isoquant represents a constant quantity of output. It is also called as Isoproduct curve. The isoquant curve is a curve which shows all combinations of inputs that have the same level of output. Mainly, the isoquant curve represents a consistent amount of output.
Isoquant and Indifference Curve
Isoquant curve is a contoured line that passes through the same point that which produce same output. While the quantities of inputs two or more are changed. Indifference curve has the maximization of the utility.
Examples of Isoquant Curve
The climatic change with respect to least cost input.
- By moving the production to China, Car manufacturing companies are happy to reduce labor cost, even though the climatic change in China is miserably inadequate.
- The Mini Cooper company is of BMW, which has not to be closed down for one sale of car. The profit curve of isoquant curve flattens at a point of curves of capital curve.
No comments:
Post a Comment