JustHoping
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I'm learning about isoquants and the text book casually stated...
"the further (the isoquant is) from the origin the greater the level of the associated output this is due to free-disposal"

But I have no idea what free disposal means and i can't seem to find a relevent definition anywhere.
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TeeEff
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(Original post by JustHoping)
I'm learning about isoquants and the text book casually stated...
"the further (the isoquant is) from the origin the greater the level of the associated output this is due to free-disposal"

But I have no idea what free disposal means and i can't seem to find a relevent definition anywhere.
Free disposal is a situation where a firm can freely discard excess factors of production. Because of this, a firm's production function can never be decreasing as they aren't penalised for having more inputs than necessary. Consequently, having more inputs will always produce at least as much output as before (so the isoquants further away from the origin have greater output), which is the monotonicity property of isoquants.
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