What is an isocost curve?

An isocost line is a curve which shows various combinations of inputs that cost the same total amount . For the two production inputs labour and capital, with fixed unit costs of the inputs, the isocost curve is a straight line .

What is isocost with example?

Isocost. An isocost shows all the combination of factors that cost the same to employ. In this example, a unit of labour and capital cost £6,666 each.

What is the difference between isoquant and indifference curve?

An isoquant is analogous to an indifference curve in more than one way. In it, two factors (capital and labour) replace two commodities of consumption. An isoquant shows equal level of product while an indifference curve shows equal level of satisfaction at all points.

What is isoquant and isocost PDF?

An isoquant is a curve that illustrates the possible combinations of resources that will produce a particular level of output. An isocost line presents the combinations of resources the firm can employ, given resource prices and the amount of money the firm plans to spend.

What is isoquant PDF?

An isoquant is a firm‟s counterpart of the consumer‟s indifference curve. An isoquant is a curve. that shows all the combinations of inputs that yield the same level of output.

What is the difference between an isoquant and an indifference curve quizlet?

What is the difference between an isoquant and an indifference​ curve? Isoquants map inputs to output and indifference curves map goods to utility.

What are indifference curves?

An indifference curve shows a combination of two goods that give a consumer equal satisfaction and utility thereby making the consumer indifferent. Along the curve, the consumer has an equal preference for the combinations of goods shown—i.e. is indifferent about any combination of goods on the curve.

What do you mean by isoquant?

An isoquant is a firm‟s counterpart of the consumer‟s indifference curve. An isoquant is a curve. that shows all the combinations of inputs that yield the same level of output. „Iso‟ means equal and „quant‟ means quantity. Therefore, an isoquant represents a constant quantity of output.

What does isoquant mean?

An isoquant (derived from quantity and the Greek word iso, meaning equal), in microeconomics, is a contour line drawn through the set of points at which the same quantity of output is produced while changing the quantities of two or more inputs.

What is isoquant and its features?

An isoquant shows alternative combinations of the two factors, each of which enables to produce a same quantity of output. Defining differently, an isoquant is the contour of all the combination of two factors that give rise to a same level of output.

What is constant along an isoquant?

Production costs are constant along an isoquant.

What is IC curve and its properties?

Definition: An indifference curve is a convex shaped curve depicting the graphical representation of the different combinations deriving the same level of satisfaction to the consumer by considering two commodities. It functions on the principle of the diminishing marginal rate of substitution (MRS).

What is isoquant and explain its types?

Definition: An isoquant curve is that convex shaped curve which is formed by joining the points depicting the different blends of the two production factors, providing constant output. Here, the term ‘isoquant’ can be cracked into ‘iso’ which implies equal and ‘quant’ that stands for quantity.

What is isoquant curve Mcq?

Solution(By Examveda Team) Isoquant is also called as equal product curve or production indifference curve or constant product curve. Isoquant indicates various combinations of two factors of production which give the same level of output per unit of time.

What is isoquant explain?

An isoquant is a curve. that shows all the combinations of inputs that yield the same level of output. „Iso‟ means equal and „quant‟ means quantity. Therefore, an isoquant represents a constant quantity of output.