Isocost v. isoquant graph. Each line segment is an isocost line representing one particular level of total input costs, denoted TC, with PL being the unit price of labor and PK the unit price of physical capital. The convex curves are isoquants, each showing various combinations of input usages that would give the particular output level designated by the particular isoquant. Tangency points show the lowest cost input combination for producing any given level of output. A curve connecting the tangency points is called the expansion path because it shows how the input usages expand as the chosen level of output expands.
In economics, an expansion path (also called a scale line[1]) is a path connecting optimal input combinations as the scale of production expands.[2] 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.[3]
Economists Alfred Stonier and Douglas Hague defined “expansion path” as "that line which reflects the least–cost method of producing different levels of output, when factor prices remain constant."[4] The points on an expansion path occur where the firm's isocost curves, each showing fixed total input cost, and its isoquants, each showing a particular level of output, are tangent; each tangency point determines the firm's conditional factor demands. As a producer's level of output increases, the firm moves from one of these tangency points to the next; the curve joining the tangency points is called the expansion path.[5]
If an expansion path forms a straight line from the origin, the production technology is considered homothetic (or homoethetic).[6] In this case, the ratio of input usages is always the same regardless of the level of output, and the inputs can be expanded proportionately so as to maintain this optimal ratio as the level of output expands. A Cobb–Douglas production function is an example of a production function that has an expansion path which is a straight line through the origin.[6]
^Jain, TR; Khanna OP (2008). Economics. VK Publications, ISBN 978-81-87344-77-3
^Hirschey, Mark (2008). Managerial economics. Cengage Learning, ISBN 978-0-324-58886-6
In economics, an expansionpath (also called a scale line) is a path connecting optimal input combinations as the scale of production expands. It is often...
original Path of Exile will continue to offer expansions after Path of Exile 2 is released with expansions for both games going forward. Reception Path of Exile...
isocost curve. The set of all such tangency points is called the firm's expansionpath. Varian, Hal., 1992, Microeconomic Analysis 3rd Ed., W.W. Norton & Company...
isoquants and isocosts (with input prices held constant) is called the expansionpath. The cost-minimization problem of the firm is to choose an input bundle...
Inline expansion is similar to macro expansion, but occurs during compilation, without changing the source code (the text), while macro expansion occurs...
anniversary celebration. Four major expansion packs have been released for the game thus far; Heart of Thorns (2015), Path of Fire (2017), End of Dragons (2022)...
In Washington Democrats rejected McKinley-style expansionism and in 1934 set the Philippines on the path to independence, which was achieved in 1946. It...
isoquants and isocosts (with input prices held constant) is called the expansionpath. Under the assumption of declining marginal rate of technical substitution...
relative prices, not on income or scale. This translates to a linear expansionpath in income: the slope of indifference curves is constant along rays beginning...
Takahashi, Dean (August 18, 2021). "How Sledgehammer Games went on the expansionpath for Call of Duty: Vanguard". Archived from the original on August 18...
The Shining Path (Spanish: Sendero Luminoso), self-named the Communist Party of Peru (Partido Comunista del Perú, abbr. PCP), is a far-left political party...
The critical path method (CPM), or critical path analysis (CPA), is an algorithm for scheduling a set of project activities. A critical path is determined...
The expansion of the universe is the increase in distance between gravitationally unbound parts of the observable universe with time. It is an intrinsic...
has undergone several rounds of expansion beginning in 1961, eventually reaching 30 teams with its most recent expansion taking place in 1998. MLB has discussed...
Path dependence is a concept in the social sciences, referring to processes where past events or decisions constrain later events or decisions. It can...
The Bantu expansion was a major series of migrations of the original Proto-Bantu-speaking group, which spread from an original nucleus around West-Central...
via New Guinea and Sulawesi. In the Philippines, which was along the expansionpath, paper mulberries are mostly descendants of modern introductions in...
In graph theory, the shortest path problem is the problem of finding a path between two vertices (or nodes) in a graph such that the sum of the weights...
caused by the lightning produces rapid expansion of the air in the path of a lightning bolt. In turn, this expansion of air creates a sonic shock wave, often...
time, these grants were ceded to the federal government. The first great expansion of the country came with the Louisiana Purchase of 1803, which doubled...
The path integral formulation is a description in quantum mechanics that generalizes the stationary action principle of classical mechanics. It replaces...
A path component, consisting of a sequence of path segments separated by a slash (/). A path is always defined for a URI, though the defined path may...
Path to War is a 2002 American biographical television film, produced by HBO and directed by John Frankenheimer. It was the final film directed by Frankenheimer...
Global Information