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Factor price frontier |
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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 MatchesMinimum variance frontierMinimum variance frontierGraph of the lowest possible portfolio variance that is attainable for a given portfolio expected return. 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. Consumption 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. 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. Further SuggestionsEfficient frontier |
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