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What are the properties of isoquants?
The further the Isoquant is from the origin, the greater will be the level of output (i.e a higher isoquant represent a higher level of output) Two Isoquants can never intersect each other Isoquants always slopes downward
Is the production possibilities curve convex to the origin?
yes
What are characteristics of an indifference curve?
indifferent curves are convex to their origin, they do not intersect, and have a negative slope
What is the ridge lines in economics?
ridge lines is the combination of isoquants
Explain the concept of ridge lines in economics?
Ridge lines is a concept in Micro Economics related to Isoquants (which shows different combination of inputs for the same level of output). However, after a certain point Isoquant begins to slope upward, if there are 2 or more isoquants then there would be similar points on the other isoquants too... on joining these points, you get the ridge lines. Note: the point from where Isoquant slopes upward is a point where the marginal product of one of the input is negative.
Why isoquants convex?
diminshing marginal rate of substitution between factors
What are the properties of isoquants?
The further the Isoquant is from the origin, the greater will be the level of output (i.e a higher isoquant represent a higher level of output) Two Isoquants can never intersect each other Isoquants always slopes downward
Is the production possibilities curve convex to the origin?
yes
What are characteristics of an indifference curve?
indifferent curves are convex to their origin, they do not intersect, and have a negative slope
What is the ridge lines in economics?
ridge lines is the combination of isoquants
What does mean convex to the origin?
A set is said to be convex with respect to the origin if the line segment between any two points in the set lies entirely within the set. In simpler terms, for any two points within the set, all the points on the line joining them are also within the set.
How producers equilibrium is achieved with isoquant and isocost curves?
producers equilibrium is achieved with isoquants and isocost curves
Explain the concept of ridge lines in economics?
Ridge lines is a concept in Micro Economics related to Isoquants (which shows different combination of inputs for the same level of output). However, after a certain point Isoquant begins to slope upward, if there are 2 or more isoquants then there would be similar points on the other isoquants too... on joining these points, you get the ridge lines. Note: the point from where Isoquant slopes upward is a point where the marginal product of one of the input is negative.
Assume that a change in government policy results in greater production of both consumer goods and investment goods?
this economy's ppc is convex to the origin
If the law of increasing opportunity costs is reflected in a production possibilities curve which is?
production possibilities curve convex to the origin. Elson Mendoza was here.
Why is ppc convex to origin?
because all factors of production cannot be equally efficiently be used to produce one product than the other...
Is a ploygon convex or not convex?
a polygon is convex
