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Isoquants & Producer’s Equilibrium (BFM and BIM)

Equilibrium of Firm and Industry
November 23, 2020
Costs Concepts (BIM and BFM)
November 24, 2020

This presentation covers the following concepts:

  1. Equal Production Curve or Isoquant Curves
  2. Marginal Rate of Technical Substitution
  3. Properties of Iso-quants curve
  4. Change in total outlay, prices remaining constant
  5. Properties of Iso-quants curve: Iso-quants have a negatively sloped, Vertical IQ is Impossible, Horizontal IQ is Impossible, Upward Sloping IQ is not possible, Iso-quants are convex to the origin, Iso-quants cannot be concave to the origin, Isoquants do not intersect, Isoquants do not intercept either axis, Iso-quants is an oval shape curve
  6. Least cost- factor combination/ producer’s equilibrium/optimal input combination
  7. Expansion Path
  8. Economies and Diseconomies of Scale

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