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What is the name of the curve that depicts consumer utility?
Another question is: What is the indifference curve using examples?
Two commodities can be substituted for each other. In this instance, the indifference curve, which is a straight-line, is consistent with MRS. Two goods can be considered complementary goods. An example would be gasoline and water inside a car. In these cases, the IC is L-shaped and convex to its origin.
Is a utility function equivalent to an indifference curve? The utility function is a function of the commodities consumed. It defines the level or satisfaction of utility. A curve of indifference shows the total number of goods that provide the same level satisfaction.
It is also important to understand the meaning of Isoquant.
Meaning. Meaning. An Isoquant curve shows all combinations of inputs that produce the same output level. 'Iso is equal, and 'quant is quantity. An isoquant therefore represents a constant output quantity.
Why do the IC curves never cross each other?
Indifference curves can't intersect one another. This is because the higher curve gives as much as the two commodities at the point where tangency is reached than the lower Indifference curve. The consumer will also be satisfied with the combination of points B and E on the indifference curve, IC1.
What is the characteristic of indifference curve?
What is an example of indifference?
What is the importance of indifference curve?
What are the uses of indifference curve?
What is the concept of indifference curve?
What is the slope of indifference curve?
How do you calculate MRTS?
What is Isoquant with diagram?
What are the properties of Isocost?
What do you mean by production?
Why Isoquant is negatively sloped?
What are the types of Isoquant?
- Smooth and Convex Isoquant: In a two-product framework, when one of the factors of production can be continuously substituted by the other, we get a smooth and convex isoquant (figure 8.8).
- L-Shaped Isoquant:
- Linear Isoquant:
What is ISO product?
Is Isoquant and indifference curve same?
How do you calculate utility value?
What is total utility and marginal utility?
What is the principle of diminishing marginal utility?
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