Iso-Quants
The term Iso-quant or Iso-product means equal quantity or equal product. A given
quantity of output may be produced with different combinations of factors. Iso-
quant curves are also known as Production Indifference curves. It is an extension
of Indifference curve analysis from the theory of consumption to the theory of
production.
Iso-quant may be defined as a locus of points representing the various
combinations of two inputs yielding the same output. Iso- quant curves slope
downward from left to right. The slope of an Iso-quant curve expresses the
marginal rate of technical substitution (MRTS). “Iso-product curve shows the
different input combinations that will produce a given output.” Paul A Samuelson
Assumptions:
1. Only two factors are used to produce a commodity.
2. Factors of production can be divided into small parts.
3. Technique of production is constant.
4.The substitution between the two factors is technically possible.
5.Factors of production can be used with maximum efficiency.
Iso-Quant Schedule:
Let us suppose that there are two factor inputs—labour and capital. An Iso-
product schedule shows the different combination of these two inputs that yield
the same level of output as shown in the table.
