Isoquant

As isoquants is called an occurrence of isolines, which is used in economics.

There are two common definitions of isoquant, this is either

  • A) the locus of all efficient combinations of inputs that produce the same output, or
  • B ) the locus of all combinations of production factors, the maximum output is the same.

The slope of the isoquant shows the marginal rate of technical substitution, it can be determined on the set of the implicit function. In Isoquantendiagramm a minimum cost combination can be seen as a point of tangency of the isoquant and isocost line.

In the theory of the firm, the isoquant describes all possible input combinations that the same output can be achieved.

Efficiency concept of Farrell

If this output by using a larger amount of P ( above the isoquant ) is reached, then calculate the technical efficiency of production of 0Q/0P. 0 .. coordinate origin Q. .. intersection of the line 0P with the isoquant ( minimum factor combination )

419551
de