Title Technology- Production II.pptx ✅

Technology: Production II
Product Lines and Iso-clines
PRODUCT LINES A product line show a physical movement of an Iso-quant as more of one factor input or more of both the factor inputs are used. The product line is drawn independent of the factor prices. Thus it does not represent an actual expansion path of a firm in the short-run or in the long-run. The product line describes a technically feasible alternative expansion path. The actual path chosen by the firm will depend upon the prices of the factor inputs.
PRODUCT LINES The product line passes through the origin if all factor inputs are variable. The product line of one variable factor will a straight line parallel to the axis on which the factor is represented. The K/L ratio decreases along the product line as more of a variable factor is used keeping the other factor constant. Of the product lines the product lines of particular interest are known as known as Iso-clines. An Iso-cline is the locus of points of different Iso-quants at which MRTS of the factors is constant.