Isoquant


Also found in: Medical, Wikipedia.

Isoquant

On a chart, a line or curve representing identical outputs when one changes one of two inputs.
References in periodicals archive ?
DEA presumes that linear substitution is possible between observed input combinations on an isoquant (which is generated from the observations in piecewise linear forms).
Because function of production is a physical relationship between producing factor and the production, there is the frontier lying on isoquant line.
Figure 1, with isoquant and isocost, implies that empirical economists must accurately specify a win production or win cost function to estimate the efficiency of sports teams rather than specify an arbitrary win regression equation.
The elasticity of transformation is the negative of the elasticity of substitution, defined along a PPF instead of an isoquant or indifference curve.
All of the combinations of time and money result in the same performance makeup of what is called a performance isoquant.
Thus, the curve drawn by the theorem can correspond to an isoquant curve in the production theory in economics.
From there on, Farrell (1957) suggested that the production frontier can be estimate via (a) a nonparametric piecewise-linear convex isoquant constructed to envelop all the points, or (b) a parametric function, such as the Cobb-Douglas form fitted to the data.
The input orientation gives the proportional reduction in all inputs that would bring a farm to the frontier isoquant while the output model reflects the proportional increase in outputs attainable by moving to the production possibilities frontier holding input quantities constant.
Figure 2 is based upon what is called the "Hicksian Composite Unit Value Isoquant," as found in the work of Jones (1974) and Caves, Frankel, and Jones (2007, pp.
Standard economic optimizing techniques, such as isoquant and isocost analysis, predict that when an input becomes less productive, firms will use it less and use more of their other inputs instead.
is the cost-minimizing capital stock for production along the ex post isoquant.
In the isoquant diagram, first growth results as a move from an inefficient point XI inside isoquant Q1 to a point on the isoquant (X1*) and to the optimal allocation (BCP*).