RE: 22-03-2024 - Economy - Isoquants and Isocosts [EN]-[IT]
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The production cost seems it has a long way to decide how the product will be sold right?
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You are viewing a single comment's thread:
The production cost seems it has a long way to decide how the product will be sold right?
Thanks for being here. Managing the production of a company is something extremely complicated. In a section of this article I talk about isocosts. An isocost is essentially a graph that represents the infinite combinations of two production factors that give rise to the same production cost. Example: in order to produce a quantity Q=600, 4 machine units and 1 work unit could be used, but also, for example, 2 machine units and 2 work units. In both cases we will have the same production cost.