Monday, April 20, 2015
Isoresource and Isorevenue
ISORESOURCE AND ISOREVENUE
by Anton Antonio
March 30, 2015
Natural resources can also be considered as products and commodities too… although we should not lose sight that they are finite and must be utilized with sustainable development in mind. The fact that they are finite should make it imperative (meaning: crucial and of vital importance) to decide on the best possible outputs/products given a set of inputs/materials. An isoresource and isorevenue analysis will be a good tool in determining these outputs.
The isoresource curve, in Economics, is also called a production-possibility frontier (PFF), a production-possibility curve, production-possibility boundary, or product transformation curve. It is a graph that shows the maximum combinations of two outputs that can be produced given the available resources. It is also a graph representing production tradeoffs of an economy given fixed resources. On the other hand, an isorevenue live/curve shows combination of two outputs that will give the best revenue given the cost and prices of the outputs.
Using these management tools, upland and marine resources could be managed to come up with the best input and output combinations to minimize cost and maximize profitability. This is on the pretext that natural resources are finite. The combination represented by these curves point towards indicators that show where an economy or an upland business venture decides on its priorities or product/output mixes. These curves give better choice in the production of more capital goods and fewer consumer goods or vice versa. This is the importance of graphs with curves called isoresource and isorevenue.
Just my little thoughts…
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