Microeconomics - iso & indiff

What does isoquant/isocost & indifference curve and budget constraint analysis have in common? I know that they both 'look' similar & both strive to find the same things "consumers want utility" & "producers want eco profits" (maximising both).

What other things do they have in common? I'm kind of flat out.
Thank you.

Properties of the indifference curve and the isoquants are also the same i.e
(1)Two indiferece curve/isoquants can not cut each other.(2)Both are negatively sloped etc.

With respect to isoquants and indifference curves. both are negatively sloped, both are (almost always) concave, both are rank-ordered in that a "higher" curve represents MORE than a "lower" curve. Both show a constant relationship between two inputs or goods. That is, and indifference curve shows the possible mixes of good A and good B that will produce a given level of utility. An isoquant curve show the possible mixes of input A and input B that will, IF USED EFFICIENTLY, produce a given level of output. The indiffernce curve assumes the consume is a rational consumer, who tries to maximize utility, and has a utility function that has decreasing returns to scale. The isoquant assumes the producer is rational, and will maximize profits, and that the production function has decreasing returns to scale.

With respect to isocosts and budget constraints. They too are negatively sloped. They are generally linear. However, if they are not linear, they will be convex. They too can be rank-ordered.

Thats enough for now. However, one could write a 20 page paper on this question.


thx for that! it's definately what i had in mind. now to look in textbook and expand on it =)

what is the relationship between Isoquant and indiffernce curve

  1. 👍 0
  2. 👎 0
  3. 👁 172
asked by lostkid
  1. please respond the above questions
    immediately now

    1. 👍 0
    2. 👎 0
    posted by abebe

Respond to this Question

First Name

Your Response

Similar Questions

  1. Microeconomics

    I need help with question, we havent covered this topic yet and i wanted to push ahead. Thanks. 'Consumers maximise utility subject to a budget constraint. Firms maximise output subject to a cost constraint'. Outline how the

    asked by Anonymous on October 19, 2006
  2. Economics

    Hi guys I need a hand please!! Whatever you can share would be helpful!! Thank you so much! Here is the question below: ‘Consumers maximize utility subject to a budget constraint. Firms maximize output subject to a cost

    asked by D on October 27, 2006
  3. econmics

    Graphical and mathematical expression of utility ,until ,isocost ,indifference curve ,budget line , monopolistic

    asked by Berhanu on February 15, 2019
  4. graphs

    Students can buy a caffeine addict card for $50, which entitles them to a 25% discount on the price of coffee sold at the cafetaria. With coffee on horizontal axis and income on the vertical axis. a)Draw budgent constraint of a

    asked by Anonymous on February 5, 2007
  5. microeconomics

    Save Open Spaces (SOS) is a non-profit organization that promotes protection of undeveloped land. They perform two primary activities: purchasing undeveloped land for preservation and lobbying Congress for additional protection

    asked by Alex on September 7, 2015
  6. micro

    On one society A the price of an apple is $3 and the price of an orange is $7, while on socity B the apple and orange are the same price, $4. society A people consume 10 apples and 8 oranges while societyB people consume 8 apples

    asked by aloha on May 26, 2007
  7. Economics(micro)

    hey, could someone please give me some tips for the following questions. iv got a test coming up, and one of these 4 questions will be in it..... so i have to write 4 essays n learn it. i just need a few points to put my essay

    asked by Pia on October 23, 2006
  8. Microeconomics

    Given the utility function U(C,T) = 3C+2T A budget constraint of $50, C = coffee which is $2 a cup, and T = tea which is $1.25 a cup, what is the optimal consumption bundle, and maximum utility possible? Also derive an expression

    asked by Daniel on August 14, 2008
  9. microeconomics

    Budget constraint 1 is faced when price food = 10 and price clothing = 5. Budget constraint 2 is faced when pfood = 40/7 and pclothing = 10. The income is 100 for both budget constraints. Draw both budget constraints. Next, draw

    asked by Alex on September 7, 2015
  10. Microeconomics

    1. The utility function is given by: U=x+y and the budget line is x+2y=100. Then the price of good x goes up to 4. Find the Hicksian substitution effect, income effect, and total change in demand for good x from the change --- Ok

    asked by Andrew on November 28, 2006

More Similar Questions