Farrell (1957) discovered such isoquants
as efficient boundaries or frontiers in Eq.
This section surveys Rothbard's analysis of isoquants
and isocosts in preparation for tracing out factor demand curves, and compares it with his later derivation of the factor demand curve, as well as his remarks on the causal influence of output prices on input prices.
So, for example, the neoclassical technique of isoquants
are introduced as a basis for exploring technological progress, juxtaposed to a thin history of capitalism (a narrative of mainly improving human material welfare and rights that puts aside power relations and the struggle for those rights and that welfare).
We also graph the isoquants
for the liquidity-constrained high-default-cost household.
If the production function is q = 2L + 5K , then the associated isoquants
Figure 1 illustrates this concept with two notional performance isoquants
or efficient boundaries of the sections of T can be defined in radial terms as follows (Farrell 1957).
Eventually, factor inputs and technical improvements cause movement outward to higher-level isoquants
, and correspondingly an outward shift of the PPF.
Given scarce resources, any level of output can be derived from a combination of labor and technology, thus depicting a production possibility frontier (PPF), concave to the origin, as opposed to isoquants
, showing the combination of labor and capital for a given level of output, which is convex to the origin.
Given the research cited above concerning the value of experiential education and given the long-standing presumed value of lecture-based education, the isoquants
should display the usual convex-to-the-origin configuration.
that KL is tangent to the lowest drawn isoquants
In this case the isoquants
, representing the locus of workforce distributions that yield equal output per worker, are also 45[degrees] lines and the maximum output per worker that this workforce can produce is represented by an isoquant
that is also the 45[degrees] age distribution line.