A simple and quick description of ISOQUANT CURVES and its features to help you with your studies.

1. ISOQUANT
CURVES

2. • — According to Ferguson, "An isoquant is a curve
showing all possible combinations of inputs
physically capable of producing a given level of
output"
• — In the words of Peterson, "An isoquant curve may
be defined as a curve showing the possible
combinations of two variable factors that can be
used to produce the same total product"
• The term Isoquant or Iso-product is composed of 'iso'
implying equal and 'quant' implying quantity or
product or output. Thus it means equal quantity or
equal output. Different factors are needed to produce
goods.
• Isoquant curves are also known as Equal product or
Iso-product or Production Indifference Curves.

3. Assumptions:
The main assumptions of Iso-quant curves are as follows:
1. Two Factors of Production:
Only two factors are used to produce a commodity.
2. Divisible Factor:
Factors of production can be divided into small parts.
3. Constant Technique:
Technique of production is constant or is known before hand.
4. Possibility of Technical Substitution:
The substitution between the two factors is technically possible.
That is, production function is of ‘variable proportion’ type
rather than fixed proportion.
5. Efficient Combinations:
Under the given technique, factors of production can be used
with maximum efficiency.

4. CHARACTERISTICS
• Iso-Product Curves Slope Downward from Left to Right:
They slope downward because MTRS of labour for capital
diminishes. When we increase labour, we have to decrease
capital to produce a given level of output.
The Fig. shows that when the
amount of labour is increased from
OL to OL1, the amount of capital has
to be decreased from OK to OK1,
The iso-product curve (IQ) is
falling as shown in the figure.

5. • Isoquants are Convex to the Origin:
Like indifference curves, isoquants are convex to the origin.This
is due to dimnishing marginal rate of substitution.
• Higher Iso-Product Curves Represent Higher Level of Output:
This is because of the fact that higher curve will either have
more units of one factor or both.
units of labour have been taken on
OX axis while on OY, units of
capital. IQ1 represents an output
level of 100 units whereas IQ2
represents 200 units of output.

6. • Isoquants Need Not be Parallel to Each Other:
It so happens because the rate of substitution in Different isoquant
schedules need not be necessarily equal. therefore,isoquants
may not be parallel as shown in .We may note that the
isoquants Iq1 and Iq2 are parallel but the
Isoquants Iq3 and Iq4 are not parallel to each other.
• No Isoquant can Touch Either Axis:
If an isoquant touches X-axis, it would mean that the product is
being produced with the help of labour alone without using
capital at all. These logical absurdities for OL units of labour
alone are unable to produce anything.

7. Difference between Indifference Curve and Iso-
Quant Curve:
The main points of difference between indifference curve and Iso-
quant curve are explained below:
• Iso-quant curve expresses the quantity of output. Each curve refers
to given quantity of output while an indifference curve to the
quantity of satisfaction. It simply tells that the combinations on a
given indifference curve yield more satisfaction than the
combination on a lower indifference curve of production.
• Iso-quant curve represents the combinations of the factors
whereas indifference curve represents the combinations of the
goods.
• Iso-quant curve gives information regarding the economic and
uneconomic region of production. Indifference curve provides no
information regarding the economic and uneconomic region of
consumption.
• Slope of an iso-quant curve is influenced by the technical
possibility of substitution between factors of production. It depends
on marginal rate of technical substitution (MRTS) whereas slope of
an indifference curve depends on marginal rate of substitution
(MRS) between two commodities consumed by the consumer