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Isoquant Curve: & Its Characteristics

This document discusses isoquant curves, which show combinations of two input factors (such as capital and labor) that yield the same level of output. Isoquant curves have the following characteristics: 1) They slope downward, indicating a degree of substitution between inputs as one increases and the other decreases while maintaining the same output level. 2) They are convex to the origin, showing diminishing marginal rates of substitution between inputs that are not perfect substitutes. 3) They do not intersect, as each curve represents a unique output level that cannot be duplicated by another curve. The document provides examples of linear and "L-shaped" isoquant curves that can occur depending on whether inputs are perfect

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Avijit Singh Thakur
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792 views

Isoquant Curve: & Its Characteristics

This document discusses isoquant curves, which show combinations of two input factors (such as capital and labor) that yield the same level of output. Isoquant curves have the following characteristics: 1) They slope downward, indicating a degree of substitution between inputs as one increases and the other decreases while maintaining the same output level. 2) They are convex to the origin, showing diminishing marginal rates of substitution between inputs that are not perfect substitutes. 3) They do not intersect, as each curve represents a unique output level that cannot be duplicated by another curve. The document provides examples of linear and "L-shaped" isoquant curves that can occur depending on whether inputs are perfect

Uploaded by

Avijit Singh Thakur
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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ISOQUANT CURVE

& its characteristics

Submitted to:- Prof. Manmindar Singh

Submitted by:- Avijit Singh Thakur


MBA (MS)
Sec- A, IM-2K8-14
Isoquant Curve:-
‘Iso’ means equal, and ‘quant’ means quantity.
Isoquant means that the quantities throughout
a given isoquant are equal. An isoquant curve
shows various combination of two input factors
such as capital and labour, which yield the
same level of output.
From the manufacturer’s point of view, every
combination produces same output or
favourable output, so it is also called as
‘Production indifference curve’.
Isoquant Curve:-

EXAMPLE:-
Isoquant Curve:-
Units of machine

60 units of output

Units of Labour
Assumptions:-
• There are only two factors of
production.
• The production factors must
be divisible into units
• Technical conditions must be
constant.
Characteristics of
Isoquant Curve:-
• Downward Sloping:- Isoquants are
downward sloping curves because,if one
input increases, the other one reduces. A
degree of substitution is assumed between
the factors of production.In other words, an
isoquant cannot be increasing, as increase in
both the inputs does not yield same level of
output. If it is constant, it means that the
output remains constant though the use of
one of the factors in increasing, which is not
true. Isoquants slope from left to right.
Characteristics of
Isoquant Curve:-
• Convex to the origin:- Isoquants are
convex to the origin. It is because the input
factors are not perfect substitutes. One
input factor can be substituted by other
input in a ‘diminishing marginal rate’. If the
input factors were perfect substitutes, the
isoquant would be falling in a straight line. If
the inputs are used in fixed proportion, and
substitution of one input for the other
cannot take place, the isoquant wil be ‘L’
shaped.
Characteristics of
Isoquant Curve:-
• Do not intersect:- Two isoproducts, do
not intersect with each other. It is because,
each of these denote a particular level of
output. It is not possible because, if two
isoquants intersect, it means at that point
both isoquant are producing same output,
which is absurd because no two distinct
isoquants can have similar output.
Characteristics of
Isoquant Curve:-
Do not touch axes:- The isoquant
touches neither X-axis not Y-axis, as both
inputs are required to produce a given
product. If any of these quantities becomes
zero, then the output cannot be produced
using only one quantity.
TYPES OF ISOQUANT:-

LINEAR ISOQUANT:-When
inputs are perfect substitues, the
curve is straight line sloping left to
right.
TYPES OF ISOQUANT:-

INPUT- OUTPUT ISOQUANT:-


When inputs are not perfect
substitues, the curve is ‘L’ shaped.
Also known as Leonteif Curve
Isoquant Map:-
• Output varies as the factor input change.
• Nearer the point of origin lower the production.
THANK YOU!!!!!!

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