TAILIEUCHUNG - Lecture Managerial economics (10/e): Chapter 9 - Christopher R. Thomas, S. Charles Maurice

In this chapter students will be able to: Draw a graph of a typical production isoquant and use the definition of an isoquant to explain why isoquants must be downward sloping, discuss the properties of an isoquant, construct isocost curves for a given level of expenditure on inputs,. | Chapter 9: Production and Cost in the Long Run McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. Production Isoquants In the long run, all inputs are variable & isoquants are used to study production decisions An isoquant is a curve showing all possible input combinations capable of producing a given level of output Isoquants are downward sloping; if greater amounts of labor are used, less capital is required to produce a given output A Typical Isoquant Map (Figure ) Production Function 8- Typical Isoquants 9- Marginal Rate of Technical Substitution The MRTS is the slope of an isoquant & measures the rate at which the two inputs can be substituted for one another while maintaining a constant level of output The minus sign is added to make MRTS a positive number since ∆K / ∆L, the slope of the isoquant, is negative The MRTS can also be expressed as the ratio of two marginal products: Marginal Rate of Technical Substitution

Đã phát hiện trình chặn quảng cáo AdBlock
Trang web này phụ thuộc vào doanh thu từ số lần hiển thị quảng cáo để tồn tại. Vui lòng tắt trình chặn quảng cáo của bạn hoặc tạm dừng tính năng chặn quảng cáo cho trang web này.