https://gdpark.blog/tags/isoquant/Recent content in Isoquant on gdpark.blogHugoenSun, 08 Jan 2017 00:00:00 +0000https://gdpark.blog/posts/microeconomics-26-marginal-rate-of-technical-substitution/Mon, 18 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-26-marginal-rate-of-technical-substitution/We crack what the isoquant slope actually means — it’s the MRTS — and work out mathematically why that labor-for-capital swap rate keeps shrinking as you slide along the curve.https://gdpark.blog/posts/microeconomics-28-returns-to-scale/Mon, 18 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-28-returns-to-scale/We dig into the 3D production function to figure out why doubling a factory isn’t the same as building a new one — and how increasing, decreasing, and constant returns to scale all shake out.https://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-33-labor-demand-curve/Wed, 20 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-33-labor-demand-curve/We derive the labor demand curve by tracing how a firm’s optimal labor choice shifts each time the wage ticks up — first with graphs, then with a Cobb-Douglas proof.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-49-chapter-7-practice-problems/Sun, 08 Jan 2017 00:00:00 +0000https://gdpark.blog/posts/microeconomics-49-chapter-7-practice-problems/Working through Chapter 7 cost-minimization problems with gradients and isoquants — turns out it’s the exact same math as the utility-function stuff, just with different names.