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the unit price of physical capital. The convex curves are isoquants, each showing various combinations of input usages that would give the particular output level designated by the particular isoquant. Tangency points show the lowest cost input combination for producing any given level of output. A
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remain constant." The points on an expansion path occur where the firm's isocost curves, each showing fixed total input cost, and its isoquants, each showing a particular level of output, are
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of input usages is always the same regardless of the level of output, and the inputs can be expanded proportionately so as to maintain this optimal ratio as the level of output expands. A
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Isocost v. isoquant graph. Each line segment is an isocost line representing one particular level of total input costs, denoted TC, with
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is an example of a production function that has an expansion path which is a straight line through the origin.
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If an expansion path forms a straight line from the origin, the production technology is considered
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expands. It is often represented as a curve in a graph with quantities of two inputs, typically
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because it shows how the input usages expand as the chosen level of output expands.
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Production
Economics: The Basic Theory of Production Optimisation.
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Schaum's outline of theory and problems of managerial economics.
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defined “expansion path” as "that line which reflects the least–
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method of producing different levels of output, when
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Examples and exercises on the output expansion path
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111:Cobb–Douglas production function
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142:Jain, TR; Khanna OP (2008).
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