So, for example, the neoclassical technique of isoquants
are introduced as a basis for exploring technological progress, juxtaposed to a thin history of capitalism (a narrative of mainly improving human material welfare and rights that puts aside power relations and the struggle for those rights and that welfare).
We also graph the isoquants
for the liquidity-constrained high-default-cost household.
If the production function is q = 2L + 5K , then the associated isoquants
Figure 1 illustrates this concept with two notional performance isoquants
or efficient boundaries of the sections of T can be defined in radial terms as follows (Farrell 1957).
Eventually, factor inputs and technical improvements cause movement outward to higher-level isoquants
, and correspondingly an outward shift of the PPF.
Given scarce resources, any level of output can be derived from a combination of labor and technology, thus depicting a production possibility frontier (PPF), concave to the origin, as opposed to isoquants
, showing the combination of labor and capital for a given level of output, which is convex to the origin.
In this case the isoquants
, representing the locus of workforce distributions that yield equal output per worker, are also 45[degrees] lines and the maximum output per worker that this workforce can produce is represented by an isoquant
that is also the 45[degrees] age distribution line.
In the pure raiding region the isoquants
move upward toward the right.
Third, in a k-factor production model, convexity of the isoquants
is implied by negatively signed estimates of [[sigma].
As the economy grows, the isoquants
may significantly change shape so as to produce a continuous relative price change.
Figure 2 shows the isoquants
for the lowest scores for each range from "Adequate" to "Distinguished," holding the contributions of the other variables constant at zero.