Why is the point of isoquant tangent to the isocost called the optimal combination?

Q: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve.   If a=b=0.5 , the price of factor 1…

A: y= f(x1,x2)=x1ax2b a=b=0.5 the price of factor 1 is 12, the price of factor 2 is 3

Q: Consider the following production function: F (K ,L) = 2K (a) Graph at least two isoquants and…

A: Production function indicates the total production done using the given inputs. An isoquant is the…

Q: Suppose the isoquant represents the production of 120 pencils. What will happen to the isocost and…

A: A. If labour become more costly than the isocost line will pivot towards left from horizontal axis…

Q: Differentiate the isocost from the isoquant

A: In the production of goods and services, various factors of production or inputs are used in…

Q: ) Lines that represent bundles of inputs that cost the same total amount are called: Ototal cost…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: The isoquants for inputs that are perfect complements for one another consist of a series of:

A: The two goods can be called ‘perfect complement’ if one good can be consumed with another good.…

Q: Define the production function, f(x), and the average product associated with it. How do you…

A: Production is the process of transformation of inputs into output by using factors of production .…

Q: When the marginal product is greater than the average product, the average product is . .. . .. ..…

A: In a market when a firm produces output using variable inputs, there is a connection between total…

Q: Example about isoquants and isocost curve

A: Total cost:  The total cost refers to the sum total of fixed costs and variable costs that are used…

Q: The least-cost input combination is and for a total cost of On the preceding graph, use the green…

A: The isoquant curve shows the combination of two factors of production that produces the same amount…

Q: Isoquants are normally drawn with a convex shape because inputs are a) Not perfectly substitutable…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Critically review the key characteristics of the Isoquants curve.

A: The Iso-product or Iso - quants curves represent the different combinations of two inputs to…

Q: Present a graph of the following. Label your graphs completely 1.  Using the isoquant map and…

A: Isoquant:  Q=f(K,L) Q= Output L= Labor K= Capital Isoquant is the line which represents the same…

Q: In a relationship among total, average and marginal products, where TP is maximized:

A: The Total product (TP) implies the sum total of output produced using each nit of variable factor.…

Q: Consider the following production function: F (K ,L) = 2K (a) Graph at least two isoquants and…

A: Isoquant means equal quantity. Slope of isoquant is marginal rate of technical substitution given by…

Q: Explain Isoquant curve with its characteristics

A: Assets, which are the foundations of the economies, are the factors of production; these are what…

Q: 4. Draw the isoquant for the following production function and indicated level of output. Q = min…

A: Economics as a subject was developed to allocate scarce resources among humans with unlimited wants…

Q: The point of tangency between a convex isoquant and an isocost line represents an optimal…

A: Isocost line represents all input combinations that yields the firm the same cost

Q: Consider a production firm whose production function has the isoquant shown in the following graph.…

A: Given is the graph of the production firm's isoquant. The isoquant is a downward sloping curve in…

Q: Along an isoquant, The MRTSfork equals the MP of K/ MP of L. Price of L/ Price of K. O the MP of…

A: The marginal rate of technical substitution (MRTS) illustrates the rate at which one of the factor…

Q: Theoretically and mathematical prove that the slope of isoquant curve is equal to the ratio of…

A: An isoquant is a graph that depicts the many capital and labor combinations that a firm can utilize…

Q: Suppose that output is a function of labor and capital. Assume that labor is the variable input and…

A: Law of diminishing marginal product states that as we increase the variable factor ( for example…

Q: When the marginal product of labor is increasing marginal cost is decreasing constant increasing at…

A: The marginal cost is the cost of producing an additional one unit of output. Marginal products of…

Q: Create a table describing input combinations of labor and wheat flour in producing a certain cake.…

A:

Q: The average product of labor depends on how many units of Select one: a. labor are used. b. labor…

A: The average product of labor depends on how many units of : (b) labor and capital are used.

Q: Which of the following is NOT a feature of iso-product curve? Iso- product curves

A: An iso-product curve is locus of numerous mixtures of elements of manufacturing giving the identical…

Q: An isoquant curve shows All the alternative combinations of two inputs that yield the same maximum…

A: Production is the process in which the inputs are used to produce output. There are different inputs…

Q: Define marginal rate of technical substitution. Why does it decrease along the isoquant?

A: Marginal rate of technical substitution of labor for capital can be defined as the number of units…

Q: briefly explain returns to scale.  Explain the variable costs in the cost function

A: returns to scale allude to the rate by which result/output changes on the off chance that all…

Q: Isoquant curves Gym requires exactly 3 bottles of water per athlete to maximise performance…

A: Introduction Isoquant curve : Isoquant curve represents all the inputs combinations of two…

Q: If isoquants are plotted on a graph with capital measured on the vertical axis and labor on the…

A:

Q: 9. If a firm moves from one point on a production isoquant to another point on the same isoquant,…

A: Since you have posted multiple questions, we will solve only the first question for you. If you want…

Q: The production function for hamburgers can be written as q = 0.1X + 0.1Y, where X is Canadian ground…

A: A Production Possibility Frontier is a graph that shows all the possible combinations of two…

Q: The fast food company Schnabb uses labor and capital to produce its product. Holding the production…

A: Profit maximisation is a firm's financial goal. If its total output remains fixed in the near run…

Q: what are role of isocost lines in isoquant?

A: In the production of goods and services, various factors of production or inputs are used in…

Q: As the marginal physical product of a variable input increases, the marginal cost decreases. a.…

A: The cost of one additional unit of output is known as marginal cost. The concept is used to…

Q: At the point of inflexion, the marginal product is

A: To find : What will be value of marginal product at point of inflexion.

Q: Compute the firm's marginal products, and marginal rate of technical substitution. Report the…

A: Given; Production function; f(L,K)=LK Formula to calculate:- MPK=df(L,K)dKMPL=df(L,K)dLMRTS=MPLMPK

Q: Why is a cost function a derived function

A: Cost functions are derived functions. Because they are derived from the technological relationships…

Q: Hierarchy of Isoquants

A: An isoquant is a curve that shows the level of output that can be produced with different…

Q: If two inputs are perfect substitutes a. The isoquant is a straight line and the MRTS is constant b.…

A: The answer is a. The isoquant is a straight line and the MRTS is constant Therefore, if two inputs…

Q: What is economics of scale

A: Economies of scale: - Economies of scale is the ability of a firm to produce goods and services at…

Q: Šuppose that a producer is faced with input combinations that yield 500 units. Assume that capital…

A: Optimal input combination is where Isocost line is tangent to Isoquant curve.

Q: Give relation between average product and marginal product.

A: Average Product is the total product per unit of output. Average Product =Total ProductOutput…

Q: "Isoquants and isocosts are tools of optimization." Analyse the statement.

A: The firm uses inputs in the production process which is called factors of production. There are four…

Q: Question attahed in image

A: The average product of labor is the ratio of the total output with respect to the total number of…

Q: Suppose a firm could produce data storage services using two inputs: high capacity hard drive (200…

A: Given information Firm firm could produce data storage services using two inputs: high capacity hard…

Q: What is the difference between a fixed input and a variable input?

A: Inputs are the resources that are used in the production of output. There are generally four inputs…

Q: Explain Isoquant curve?

A: For the production of goods and services firms requires factors of production namely land, labor,…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.