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 A curve which gives us the same amount of
output with various combinations of inputs is
named as Isoquants in Microeconomics.
 Iso- means- ‘Equal’
 -’Quant’ is quantity
 Isoquant – a line of equal quantity

 Isoquants are negatively inclined
 An Isoquant lying above and to the right of one
more stands for a advanced productivity level.
 No Isoquants can intersect each other
 Isoquants need not be corresponding since the
rate of substitution amidst two factors is not
essentially the same in all Isoquant
programmes.

 Amidst two Isoquants there can be a number
of Isoquants presenting diverse levels of
productivity which the mixture of the two
aspects can capitulate.
 Units of productivity presented on Isoquants
are random or any other variables can be
presented.
 No Isoquants can touch either axis
 Each Isoquant is convex to the origin

Wheat
Rice
20
10
IC0
IC1
I
C2
W*
R*

 An Isoquant is equivalent to an indifference curve in
a quantity of ways.
 In it, two factors (labour and capital) reinstate two
articles of consumption.
 An Isoquant presents same amount of goods while in
indifference curve gives same amount of
contentment at all points.
 The properties of Isoquants as we have discussed are
are unerringly to those of indifference curves.
 Nevertheless there are definite differences amidst
the two which is being discussed in the next PPTs.

Indifference curve Isoquant
Utility function Production function
Goods Inputs
Marginal rate of substitution Marginal rate of technical
substitution
Max utility Max profits
Min expenditure Minimize costs

Production Function may be written as
Q = F(K, L)
Where K = amount of capital used and
L = amount of labor.
Q = output, and
F are general symbols that mean output is a function of
capital and labor.
The output, Q, from the production function is the
maximum output that can be obtained form the inputs.

Capital
Labor
K+
In the short run the
firm would have a
constraint of
capital, say K+ here
this leads the
producer to produce
along the dotted
line, or maybe
below it.

Labor
Capital In the all three curve shown
in the PPT a different
combinations of L and K
that give the same amount of
output on each Isoquants
curve. Curves in the right
hand side have more output.

Capital
Labor
Change in K
Change in L
Here the change is
indicated with the use
of a triangle.
slope =

The slope of the Isoquant curve at a point is
K/ L
The marginal product of an input is defined as the change in
output divided by the change in the input, the slope can be
manipulated to be:
K Q and since K = 1
L Q Q MPK
So the slope is MPL/MPK which is also called as the MRTS (in
absolute value) and it is a measure of the rate at which inputs
can be substituted and output remains the same.

Two extreme cases show the
possible range of input
substitution in production
Perfect substitutes
MRTS is constant at all
points on isoquant
Same output can be
produced with a lot of
capital or a lot of labor
or a balanced mix

Fixed proportions production
function
There is no substitution
available between inputs
The output can be made with
only a specific proportion of
capital and labor
Cannot increase output unless
increase both capital and labor
in that specific proportion

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