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Production 2
- 3. Isoquants are covex to the Origin
- 4. ECONOMIC REGION OF PRODUCTION Y A 1 A 2 A 3 A 4 B 1 B 2 B 3 B 4 IQ 1 IQ 2 IQ 3 IQ 4 X O LABOUR CAPITAL
- 6. ISO-COST LINE Rs. 200 Rs. 300 Rs. 400 80 60 10 20 30 40 40 20 O Y X B D F A C E
- 7. PRODUCER’S EQUIBRIUM Capital O Y X O Y X Labour E 1 C D F H E IQ 2 U T G R P Q IQ E 2 IQ 3 IQ 1 A B Capital Labour Figure-1 Figure-2
- 8. EXPANSION PATH G E B A F H C D O Y X Expansion Path E 1 E 2 E 3 E 4