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» Economics » Mikro » Topics begins with I » ISO quantum

Page modified: Wednesday, July 13, 2011 03:25:12

ISO quanta one calls a development of ISO lines, which is used in the economic science. ISO quanta are the geometrical place of all combinations of factors of production, which produce the same output. Which is illustrated in the household theory with the Indifferenzkurve, is to be compared with that ISO quantum in the production theory.

The upward gradient ISO quantum indicates the border rate to the technical substitution, it can over the sentence of the implicit function be determined. In the ISO quantum diagram a minimum cost combination is to be recognized as Tangentialpunkt of ISO quantum and ISO cost straight lines.

Efficiency concept of Farrell

If this output is reached by the employment a larger quantity of P (lies over-half the ISO quanta), then the technical efficiency of this production from 0Q/0P.0 computes itself"… KoordinatenursprungQ"… intersection of the straight line 0P with the ISO quanta (minimum factor combination)

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