The points in between, on the downward sloping section, correspond to cases in which the firm runs some of its machines fast and some slowly. The two corners of the isoquant correspond to the case in which all the machines in the factory run slowly, and the case in which they all run fast. (I am considering only raw material and labor as inputs, ignoring the machine.) An isoquant for such a technology has the form shown in the following figure. ![]() The firm can run some of its machines fast, and some slowly. If they run slowly, then a relatively large amount of labor is used together with a relatively small amount of raw material. If they run fast, then a relatively small amount of labor is used together with a relatively largeĪmount of raw material (since some is wasted). For example, perhaps machines can be operated at two possible speeds, fast and slow. ![]() In each technique there is no possibility of substituting one input for another, but various mixes of the two techniques may be used by the firm. ![]() Isoquants for a technology in which there are two possible techniquesĬonsider a technology in which there are two possible techniques. Examples and exercises on isoquants and the marginal rate of technical substitution Examples and exercises on isoquants and the marginal rate of technical substitition Isoquants for a fixed proportions production functionĬonsider the fixed proportions production function F ( z 1, z 2) = min, the isoquants take the form shown in the following figure.
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