Isoquants represent combinations of inputs that produce the same level of output. They have several key properties: 1. Isoquants slope downward, meaning more of one input requires less of the other to maintain output. 2. They are convex to the origin, due to decreasing marginal rates of technical substitution between inputs as one is increased relative to the other. 3. Isoquants never intersect, as that would represent one combination producing two output levels. Higher isoquants correspond to higher output levels.

1. ISOQUANT

2. ISOQUANTS
 The term Iso-quant or Iso-product is
composed of two words, Iso = equal, quant =
quantity or product = output.
 Isoquants are the curves which represent the
different combinations of inputs producing a
particular quantity of output. Any combinations
on the isoquant represents the same level of
output.

3. DEFINITION
“Iso-product curve shows the different input
combinations that will produce a given
output.” Samuelson
 “An Iso-quant is a curve showing all possible
combinations of inputs physically capable of
producing a given level of output.” Ferguson

4. ASSUMPTIONS
Two Factors of Production
 Divisible Factor
 Constant Technique
 Possibility of Technical Substitution- production
function is of ‘variable proportion’ type rather than
fixed proportion.
 Efficient Combinations - Under the given
technique, factors of production can be used with
maximum efficiency.

5. ISO PRODUCT SCHEDULE

6. ISOQUANT CURVE

7. ISOQUANT MAP

8. PROPERTIES
1. Iso-Product Curves Slope Downward from Left
to Right
 When we increase labour, we have to decrease
capital to produce a given level of output.

9. 2. Isoquants are Convex to the Origin
☻ Due to MRTS (Marginal Rate of Technical
Substitution)
☻ MRTS = ∆L/∆C
MRTS of B = 12-8/2-1
= 4/1 =4
Combination Units of capital Units of labour MRTS
A 1 12
B 2 8 4
C 3 5 3
D 4 3 2
E 5 2 1

10. MRTS (Marginal Rate of Technical Substitution)
* Based on the production function where two
factors can be substituted in variable
proportions in such a way as to produce a
constant level of output.

11. 3. Two Iso-Product Curves Never Cut Each
Other
♫ If two isoquant curves intersect each other – a
single combination of two factors produces
two levels of output.

12. 4. Higher Iso-Product Curves Represent Higher
Level of Output
♪ IQ1 represents an output level of 100 units
whereas IQ2 represents 200 units of output.

13. 5. Isoquants Need Not be Parallel to Each Other
♠ The rate of substitution in different isoquant
schedules need not be necessarily equal.

14. 6. No Isoquant can Touch Either Axis
♣ If an isoquant touches X-axis, then the product
is being produced with the help of labour alone
without using capital at all.

15. 7. Each Isoquant is Oval-Shaped
► The firm will produce only in those segments of the isoquants which are
convex to the origin and lie between the ridge lines – economic regions of
production
► Up dotted portion, more capital and in the lower dotted portion more
labour- uneconomic regions of production

16. Types of Isoquant Curves

17. Linear Isoquant Curve
• Perfect substitutes – production with only
capital or only labor or through “n” number of
combinations between these two factors

18. Right Angle Iso-quant Curve
No substitution between the factors of production.
According to this, there is only one method of
production to produce any one commodity.
This curve is also known as Leontief Iso-quant, input-
output isoquant and is a right angled curve.

19. Kinked iso-quant Curve
 Limited substitutability between the factors of
production.
Kinked iso-quant curve is also known as activity
analysis programming iso-quant or linear
programming iso-quant.

20. Convex Iso-quant Curve
 Factors are substituted for each other but up to
a certain extent.
This curve is smooth and convex to the origin.