|
|
Factor price frontier |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Factor price frontierA curve in factor space showing the minimum combinations of factor prices consistent with absence of profit in producing one or more goods, given their prices. Since, with perfect competition, profit implies disequilibrium, this shows a lower bound on equilibrium factor prices.Similar MatchesConsumption possibility frontierConsumption possibility frontierA graph of the maximum quantities of goods (usually two) that an economy can consume in a specified situation, such as autarky and free trade. Used to illustrate the potential benefits from trade by showing that it can expand consumption possibilities. Delivered at Frontier (DAF)Delivered at Frontier (DAF)Seller must supply the goods at his or her own risk and expense delivered to a named place (usually a border location) by a specified time. The buyer is responsible for the importation. This is normally is used with rail, truck, or multi-modal shipments. Production possibility frontierProduction possibility frontierA diagram showing the maximum output possible for one good for various outputs of another (or several others), given technology and factor endowments. Also called a transformation curve or production possibility curve. Utility possibility frontierUtility possibility frontierIn a diagram with levels of individual utility on the axes, a curve showing the maximum attainable levels of utility in a given situation, such as free trade or autarky. Used by Samuelson (1962) to demonstrate the gains from trade. Efficient frontierEfficient frontierThe combinations of securities portfolios that maximize expected return for any level of expected risk, or that minimizes expected risk for any level of expected return. Pioneered by Harry Markowitz. Further SuggestionsMinimum variance frontier |
|
|
|