How to read this
The shaded area is the input requirement set : every bundle that can produce at least . Its lower boundary is the isoquant.
- Drag and : free disposal, convexity and constant returns to scale are checked at both points.
- Choose Not convex or Congestion, and find two bundles that break an assumption.
- Exercise 1 of the notes is the last technology in the list.
Technology
Output level
Exercise 1
Activities each produce one unit. (iii) asks whether is on .
Points
( , )
( , )
Drag a point in the plot, or tap anywhere to move the nearer one there.
Show
Input space
shaded: , boundary: the isoquant ; , , ; a red ✕ marks a point that breaks an assumption. (every point of doubled) and : they coincide exactly under constant returns.