Common questions

What do you mean by ridge lines?

What do you mean by ridge lines?

noun. a line formed along the highest points of a mountain ridge. an area of higher ground separating two adjacent streams or watersheds.

What are ridge lines explain with diagram?

The area of rational operation may be shown by drawing two lines from the origin enclosing only those parts of the isoquants where each factor has a positive marginal product. Such lines are called ridge lines. Negative marginal products appear in that part of the isoquant which has a positive slope.

What is ridge line state the economic region of production?

The ridge lines A and B demarcate the technically efficient region of production. Above the line OA and below the line OB slope of the isoquants is positive which means that increases in both capital and labour are required to produce a given fixed quantity of output.

What is the usefulness of ridge lines?

Ridge lines eliminate economically irrelevant input combinations and encompass economically feasible range of production.

What is ISO cost line?

Iso-cost line represents the price of factors along with the amount of money an organization is willing to spend on factors. In other words, it shows different combinations of factors that can be purchased at a certain amount of money.

What is a geological ridge?

A ridge or a mountain ridge is a geographical feature consisting of a chain of mountains or hills that form a continuous elevated crest for some distance. The sides of the ridge slope away from narrow top on either side. Ridges are usually termed hills or mountains as well, depending on size.

What does a straight line isoquant mean?

Isoquants are curves that represent efficient blend of different inputs such as labor and capital which yield the same (iso) level of output (quantity). When both inputs are perfect substitutes, isoquants are straight line and have a constant slope because one input can be replaced with the other at the same rate.

What is ISO curve?

The isoquant is known, alternatively, as an equal product curve or a production indifference curve. The exact slope of the isoquant curve on the graph shows the rate at which a given input, either labor or capital, can be substituted for the other while keeping the same output level.

What is the meaning of a ridge line?

The line (R’) connecting all points, such as £, F, G and H, is called a ridge line; it marks off the boundary between stage II and stage III of production.

Why are ridge lines important in labour economics?

In these sections, youre increasing the amounts of both inputs, but output is not increasing, because the marginal product of one the inputs is negative. fThe lines connecting the points where the isoquants begin to slope upward are called ridge lines.

How are production techniques efficient inside the ridge lines?

Production techniques are only efficient inside the ridge lines. The marginal products of factors are negative and the methods of production are inefficient outside the ridge lines.

What’s the difference between upper and lower ridge lines?

The line that connects upper boundary points of isoqunts (i.e., a, b and c) is called upper ridge line and the line that joins lower boundary points of isoquants (i.e., p, q and r) is called lower ridge line.