Isoquant


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Isoquant

On a chart, a line or curve representing identical outputs when one changes one of two inputs.
References in periodicals archive ?
This pivots the isocost inward to reflect the higher price of factor X, which is then shifted rightwards until it is tangent with the original isoquant at a new cost minimizing combination B and as a result the firm demands only Q2 of X now.
With further training and updating of capital the firm or bank can expect to move towards the efficient frontier described by the isoquant in
A group of the combinations is interpreted as the isoquant curve between two inputs in the production theory in economics.
Assume that there is more than one 'best-practice' technique available, that is, there is a Salter isoquant or ex ante production function (assumed for simplicity, as before, to exhibit constant returns to scale, so that current knowledge may be summed up in the unit isoquant).
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.
f] corresponding to the point of tangency of the isoquant of bank's profit and borrower's utility.
Quintessence of marginal technical substitution technique is in depicting mechanics of shifting to using more of one production input than another to achieve same output level--which is constant while going over the isoquant (line of this constant output with replacing inputs).
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.
Scenario A: The premium rise determines a fall in absorption to the level of isoquant [Y.
In the initial equilibrium, the slope of the isoquant [Y.
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.