The word an isoquant is a locus of points, representing different combinations labour and capital .An isoquant Curve. ‘ISO’ is of Greek origin and means equal or same and ‘quant’ means quantity. An isoquant may be defined as a curve showing all the various combinations of two factors that can produce a given level of output. The isoquant shows- the whole range of alternative ways of producing^{-} the same level of output. The modern economists are using isoquant, or ‘ISO’ product curves for determining the optimum factor combination to produce certain units of a commodity at the least cost. The concept of isoquant or equal product curves can be better explained with the help of schedule given below:
lsoquant Schedule
Combinations |
Factor X |
Factor Y |
Total output |
A |
1 |
14 |
100 meters |
B |
2 |
10 |
100 meters |
C |
3 |
7 |
100 meters |
D |
4 |
5 |
100 meters |
E |
5 |
4 |
100 meters |
In the table given above, it is shown that a producer employs two factors of production X and Y for producing an output of 100 meters of cloth. There are five combinations which produce the same level of output (100 meters of cloth). The.factor combination A using 1 unit of factor X and 14 units of factor Y produces 100 meters of cloth. The combination B using 2 units of factor X and 10 units of factor Y produces 100 meters of cloth. Similarly combinations C, D and E, employing 3 units of X and 7 units of Y, 4 units of X and 5 units of Y, 5 units of X and 4 units of Y produce 100 units of output, each. The producer, here, is indifferent as to which combination of inputs he uses for producing the same amount of output. The alternative techniques for producing a given level of output can be plotted on a graph.
The figure 12.1 shows the 100 units isoquant plotted to ISO product schedule. The five factor combinations of X and Y are plotted and are shown by points a, b, c, d and e. If we join these points, it forms an ‘isoquant’.
An isoquant therefore, is the graphic representation of an iso-product schedule. It may -here be 6 noted that all the factor combinations of X and Y on an iso product curve are 2 6 technically efficient combinations. The producer is indifferent as to which ,combination he uses for producing the same level of output. It is in this way that an iso product curve is also called ‘production indifference curve’. In the figure 12.1, ISO product IP curve represents the various combinations of the two inputs which output (100 meters of cloth).
Related Economics Topics
- Marginal Rate Of Technical
- An Isoquant Map
- Optimum Factor Combination
- Properties Of Isoquants
- PROPERTIES OF INDIFFERENCE CURVES
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