Isoquant

BY:ATHMIKA RAO

FATHIMA SABIRAALTHAF HUSSAIN

ISOQUANT

S

ISOQUANT

Isoquant derived from Italian word

iso= equal quant= product

Geometric representation of production

funtion

Isoquant indicates various combinations

of two factors of production which give

the same level of output per unit of time.

Fixed inputs – constant in nature

ex: land, building, asset etc

Variable inputs – vary with the

environment

ex: raw material, capital and

labour

iso-quant represents 2 variable inputs

capital(k) and labour (L)

Isoquant Indifference curve

Producer goods

Output

Combination of inputs

Consumer goods

Satisfaction

Combination of commodities

Isoquant ISOQUANT

MARGINAL RATE OF TECHNICAL SUBSTITUTION

the rate at which a firm must

substitute one input for another in

order to keep production at a given

level

the rate at which capital can be

exchanged for 1 more (or less) unit of

labor

MPK = the marginal product of K

MPL = the marginal product of L

Q= MPK K + MPL L

Q= 0 along a given isosquant

MPK K + MPL L = 0

MRTS= K/ L

PROPERTIES OF AN ISOQUANT

TYPES OF ISOQUANT

Linear isoquant

Leontief isoquant

THANK YOU