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Hi, I need help with essay on Isocost-Isoquant. Paper must be at least 500 words. Please, no plagiarized work!In the above Isocost-Isoquant it can be observed that as one move from the left to the rig
Hi, I need help with essay on Isocost-Isoquant. Paper must be at least 500 words. Please, no plagiarized work!
In the above Isocost-Isoquant it can be observed that as one move from the left to the right the marginal returns using the same ratio of labour and capital gradually decreases. At point L1, the amount of capital used is very high while the labour is low. Similarly, at point L5 the amount of capital is lowest while the level of labour is highest. The optimum profit maximisation level in the isoquant-isocost graph is point L4, which is 50,000 capitals, and 96 labourers (Oyer, 2006).
Section 2: Perfect Competition
Given that the MC=2 + 4 and = 2 + 2, the total cost may be obtained by integrating the MC. T.C=2Q+2Q2
Fixed cost= T.C-A.V.C
