https://gdpark.blog/tags/isocost/Recent content in Isocost on gdpark.blogHugoenThu, 21 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-31-cost-and-cost-minimization/Tue, 19 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-31-cost-and-cost-minimization/We dig into the cost minimization problem — and spoiler, it’s basically the same deal as utility maximization, just swap the budget line for an isocost line.https://gdpark.blog/posts/microeconomics-32-expansion-path/Tue, 19 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-32-expansion-path/Unlike demand theory, firms chasing a fixed output level have zero income effect — just pure substitution — and tracing those cost-minimizing combos as output rises draws out the expansion path.https://gdpark.blog/posts/microeconomics-34-short-run-analysis/Wed, 20 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-34-short-run-analysis/In the short run capital is locked in at K̄, so cost minimization means working around that constraint — which shifts your expansion path and nudges total cost up.https://gdpark.blog/posts/microeconomics-35-cost-minimization-with-three-variables/Wed, 20 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-35-cost-minimization-with-three-variables/Adding a third input M sounds fancy, but once you pin K as a fixed cost the whole 3D problem just collapses back into the same old 2D setup — same playbook, every time.https://gdpark.blog/posts/microeconomics-38-economies-of-scale-and-diseconomies-of-scale/Thu, 21 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-38-economies-of-scale-and-diseconomies-of-scale/We poke at what happens to TC when factor prices move, work through output elasticity of cost, and land on exactly what economies vs. diseconomies of scale actually mean.