20. ISOQUANT An Isoquant is a curve representing the various combinations of two inputs that produce the same amount of output. Q = f( L ,K) Example- diff combinations of L n k ,required to produce 45 units of goods X, join the points by a curve……
21.
22.
23.
24. An isoquant map Units of capital ( K ) Units of labour (L) I 1 I 2 I 3 I 4 I 5
28. With the given cost C the firm can purchase any combination of labor and capital on the line AB. Thus AB is the isocost line .Points on a given isocost line show alternative production processes of equal cost. The slope of the isocost line is Pl/ Pk i.e. OA/OB K L O A B C/r C/w
29. K L O B A E F C D If the unit prices of the factors remain constant and the total cost level changes the isocost line shift parallely, its slope remaining the same. As the cost level increases (decreases) the isocost line shifts parallel to the right side (left side) and we will get one isocost line for each cost level.
30.
31.
32.
33.
34.
35. Units of capital (K) O Units of labour (L) TC 1 TC 2 TC 3 TC 4 TC 5 TC 6 TC 7 100 200 300 400 500 600 700 Expansion path
If the unit prices of the factors remain constant and the total cost level changes the isocost line shift parallely, ots slope remaining the same.As the cost level increases(decreases) the isocost line shifts parallel to the rightside(left side) and we will get one isocost line for each cost level.
![[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)