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Characteristics of Isoquants

Here, we understand the concept about what is Isoquants and its Characteristics in detailed with diagram.

Characteristics of Isoquants
Before, we discuss about the characteristics of isoquants, we first understand the meaning of Isoquants.
Meaning of Isoquants:
An isoquant is a curve showing those combinations of two factors that yielding same quantity of output. That is Iso means equal and Quant means quantity.
Now we will discuss its Characteristics in detail-
Characteristics of Isoquants:
The main characteristics of isoquants are as follows:
(1) Isoquant slopes down from left to right:
It is said that the negative slope of the isoquant indicates that an increase in the quantity of labour employed that associated with decrease in the quantity of capital that results that output remains constant. Conversely, an increase in the quantity of capital must be accompained by decrease in the quantity of labour that results output remains constant. This is shown in below mentioned figure-
Figure-
As shown in figure, suppose when we move from A to B on the isoquant IQ, output remains constant because on the one hand quantity of labour employed increases by CD, while, on other side, quantity of capital decrease by EF.
(2) No two isoquants can intersect each other:
This characteristic we understand with the help of figure as follows-
Figure
As shown in above figure, here two isoquants intersect with each other at point A. It clearly indicates and proved absurd and unacceptable.
(i) B = A because both are situated on the same isoquant IQ2.
(ii) C = A because both situated on the same isoquant IQ1.
(iii) B = C.
Thus, we conclude that B and C combinations yield the same output. It is not true. Combination C lies on the higher isoquant as compared to combination B. Here, combination C includes greater amount of both labour and capital as compared to combination B. Therefore, combination C must have greater output as compared to combination B.
(3) Every isoquant represents a definite level of output:
Here, higher the isoquant, higher will be the level of output as shown in figure.
Figure
As shown in above figure, isoquant IQ2 is higher than the isoquant IQ1. It clearly indicates that factor combination situated on IQ2 yields greater output that is 200 units as compared to any factor combination lying on IQ1 that is 100 units.
Suppose, take two points A and B. As compared to combination A, combination B includes greater quantity of both labour and capital, therefore, B yields greater output than A.
(4) Every isoquant is convex to the point of origin:
The slope of isoquant decreases as we move on it to the right. Indicates that the convexity of isoquant implies when we move to the right, quantity of labour increases  while capital diminishes. Marginal productivity of labour diminishes while capital increases. In this situation, suppose if output remain constant, we substitute greater and greater amount of labour for each unit of capital lost. Means, we will have to give up smaller and smaller quantity of capital for each additional unit of labour employed. We understand more clearly with the help of figure as mentioned below-
Figure
As we see the isoquant schedule given, Suppose when we move from A to B combination, 1 unit of labour = 5 units of capital that is (20 - 15).
When we move from B to C, 1 unit of labour = 4 units of capital that is (15 - 11).
Here, it clearly indicates that the marginal rate of technical substitution of labour for capital diminishes gradually as we use more labour and less capital.
What is Isoquant?
Characteristics of Isoquants
Isoquant slopes down from left to right
Every Isoquant represents a definite level of output
Every Isoquant is convex to the point of origin
No two isoquants can intersect with each other.
ISOQUANT - CHARACTERISTICS OF ISOQUANTS.
Kinnari
Tech writer at NewsandStory
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