isoquant
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An isoquant (derived from quantity and the Greek word ', , meaning "equal"), also known as iso-product curve or equal product curve''' in microeconomics, is a contour line drawn through the set of points at which the same quantity of output is produced while changing the quantities of two or more inputs. The x and y axis on an isoquant represent two relevant inputs, which are usually a factor of production such as labour, capital, land, or organisation.
~8 min read
Article
6 sectionsContents
- Vs. indifference curves
- Nature and practical uses
- Shapes
- Non-convexity
- See also
- References
An isoquant (derived from quantity and the Greek word ', , meaning "equal"), also known as iso-product curve or equal product curve''' in microeconomics, is a contour line drawn through the set of points at which the same quantity of output is produced while changing the quantities of two or more inputs. The x and y axis on an isoquant represent two relevant inputs, which are usually a factor of production such as labour, capital, land, or organisation.
== Vs. indifference curves == While an indifference curve mapping helps to solve the utility-maximizing problem of consumers, the isoquant mapping deals with the cost-minimization and profit and output maximisation problem of producers. Indifference curves further differ to isoquants, in that they cannot offer a precise measurement of utility, only how it is relevant to a baseline. Whereas, from an isoquant, the product can be measured accurately in physical units, and it is known by exactly how much isoquant 1 exceeds isoquant 2.