What is Isoquant?
Here we under the concept of isoquant in detailed.
Do you have similar website/ Product?
Show in this page just for only
$2 (for a month)
0/60
0/180
What is Isoquant?
In the above schedule, there are five combinations of labour and capital. All these combinations produce same output i.e. 100 units of X.
Isoquant:
It is a curve showing those combinations of two factors having same quantity of output. Iso means equal and quant means quantity.
Isoquant is known as equal product curve also because factor combinations lying on it are capable of producing same output. It is described as production indifference curve because, from technical point of view, a producer will always be indifferent among those factor combinations which have same quantity of output.
Now we will understand Isoquant-Schedule:
- Isoquant-Schedule: Let us we assume that there are two factors of production-capital and labour and a commodity can be produced with the help of these two factors. Production function in this case will be as follows:
Where, Px = output of X,
L = Labour,
C = Capital and
f = Functional relation.
Figure shows an imaginery schedule of isoquant as follows-
| Factor of Combination | Units of Labour | Units of Capital | Quantity of Output |
| A | 5 | 9 | 100 x |
| B | 10 | 6 | 100 x |
| C | 15 | 4 | 100 x |
| D | 29 | 3 | 100 x |
- Isoquant Curve:
Here, Points A, B, C, D represents different combinations of labour and capital having same output, that is 100 units of X. By joining these all points, we obtain iso-quant IQ known as equal product curve.
CONTINUE READING
ISOQUANT
Kinnari
Tech writer at NewsandStory