Equilibrium of Firm and Industry
November 23, 2020Costs Concepts (BIM and BFM)
November 24, 2020
This presentation covers the following concepts:
- Equal Production Curve or Isoquant Curves
- Marginal Rate of Technical Substitution
- Properties of Iso-quants curve
- Change in total outlay, prices remaining constant
- 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
- Least cost- factor combination/ producer’s equilibrium/optimal input combination
- Expansion Path
- Economies and Diseconomies of Scale
