A Production function tells you how much output you can produce for every combination of inputs.
An Isoquant is a curve that shows all possible combinations of input that yield the same output
Example of production function:
(Q = output L= Labor K = Capital)
Q = K + 5L
for the isoquant for example, using the production function above, we want to find which levels of input would yield Q = 20
20 = K + 5L
if K = 5, then L = 3 and if K = 10, then L = 2, your output would still be the same and that's your isoquant.
But for your production function your output can have different values so you'd have multiple isoquant curves and multiple isoquant curves already describe an isoquant map (Isoquant map - shows a number of isoquant curves in a single graph, describing a production function)
production function indicates the highest output that a firm can produce for every specified combinations of inputs.
ReplyDeleteIsoquat shows all the possible combinations of inputs that yield the same outputs.
A Production function tells you how much output you can produce for every combination of inputs.
ReplyDeleteAn Isoquant is a curve that shows all possible combinations of input that yield the same output
Example of production function:
(Q = output L= Labor K = Capital)
Q = K + 5L
for the isoquant for example, using the production function above, we want to find which levels of input would yield Q = 20
20 = K + 5L
if K = 5, then L = 3 and if K = 10, then L = 2, your output would still be the same and that's your isoquant.
But for your production function your output can have different values so you'd have multiple isoquant curves and multiple isoquant curves already describe an isoquant map (Isoquant map - shows a number of isoquant curves in a single graph, describing a production function)
http://www.kimoon.co.kr/mi/pindyck-8/im/Ch06.pdf
ReplyDelete