#expansion_path
Expansion path
In economics, an expansion path is a path connecting optimal input combinations as the scale of production expands. It is often represented as a curve in a graph with quantities of two inputs, typically physical capital and labor, plotted on the axes. A producer seeking to produce a given number of units of a product in the cheapest possible way chooses the point on the expansion path that is also on the isoquant associated with that output level.
Mon 18th
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