WebOptimum or Least-Cost Combination of Factors: An equal product map or isoquant map represents the various factor combinations which can yield various levels of output, every equal product curve or isoquant showing those factor combinations each of which can … WebIdentifying the optimum combination of factors of production The entrepreneur, after having decided to start a new venture, takes up the task of hiring factors of production. Further, he decides in what combinations he should combine these factors so that maximum output is produced at minimum cost. Making innovations

Economic Regions and Optimum Factor Combination - theintactone

WebProducer’s Equilibrium or Optimum Combination of Factors or Least Cost Combination: In simple words, producer’s equilibrium implies to that situation in which producer … iron and silver nitrate

What is least cost combination of factor? – Wise-Answer

WebEach point on the budget constraint represents a combination of burgers and bus tickets whose total cost adds up to Alphonso’s budget of $10. The slope of the budget constraint is determined by the relative price of burgers and bus tickets. All along the budget set, giving up one burger means gaining four bus tickets. Image credit: OpenStax CNX WebThe combination of ОС of capital and OL of labour yields 100 units of product while OC 1 of capital and OL 1 of labour produce 200 units. Therefore, the isoquant IQ 1 which lies above and to the right of the isoquant IQ, represents a larger output level. (3) No two isoquants can intersect each other. WebProducer’s equilibrium or optimisation occurs when he earns maximum profit with optimal combination of factors. A profit maximisation firm faces two choices of optimal … iron and silver nitrate reaction