Expansion path

In economics, an expansion path (also called a scale line) is a curve in a graph with quantities of two inputs, typically capital and labor, plotted on the axes. The path connects optimal input combinations as the scale of production expands. A producer seeking to produce the most units of a product in the cheapest possible way attempts to increase production along the expansion path.

Expansion path

In economics, an expansion path (also called a scale line) is a curve in a graph with quantities of two inputs, typically capital and labor, plotted on the axes. The path connects optimal input combinations as the scale of production expands. A producer seeking to produce the most units of a product in the cheapest possible way attempts to increase production along the expansion path.