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Input optimization

Unit 5: Theory of ProductionTopic 4 of 5
Browse the Microeconomics for Business syllabus

Microeconomics for Business

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What the syllabus expects

  • Isocost curve
  • Optimal employment of inputs

Input optimization

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 5: Theory of Production

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

  • Explain the scope and key elements of input optimization.
  • Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

  • Isocost curve
  • Optimal employment of inputs

Detailed Microsyllabus

  1. Isocost line

    1. Total input expenditure and input prices.
    2. Intercepts, slope and changes in the isocost line.
    3. Feasible input combinations at a given cost.

  2. Optimal input employment

    1. Combine isoquants and isocosts.
    2. Least-cost input choice for a target output.
    3. Tangency conditions and situations requiring attention to corner choices.

Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.