1.

An isoquant curve is a concave-shaped line on a graph, used in the study of microeconomics, that
charts all the factors, or inputs, that produce a specified level of output.

Isoquant curve is concave in shape, meaning it has an outline that curves inward like the interior
of a circle or sphere, as you can see in the picture it forms an inward curve line. It is used in
studying microeconomics,because it serves as chart para sa lahat ng mgafactors and input
na kinakailangan para sa iisang dami ng output.

Most commonly yung inputs na minemeasure in this curve are the capital and the labor. It
shows the combinations of the amounts of these capital and labor so that we can arrive at the
best combination for a maximized production.

Isoquant curve also aids companies sa pagsasaayosng mga input upang mai-maximize ang mga
output, na magreresult sa maximized rin na profit o kita.

1.1 The term "isoquant," broken down in Latin, means “equal quantity,” with “iso” meaning equal and
“quant” meaning quantity.

Ang term na "isoquant," ay mula sa Latin, na ang ibig sabihin ay "pantay na dami," Ang "iso" ay
nangangahulugang pantay at "quant" na nangangahulugang dami. Ang isoquant curve ay isang
representation ng pare-pareho na halaga ng output. It is also known as equal product curve
dahil equal lang lagi yung quantity ng output in different combinations.

In microeconomics, kapag ni-plot sa graph ang isoquant curve is makikita yung mga sinasabing
combinations ng two factors or inputs para makapag-produce ng same amount ng output.
Katulad ng sinabi kanina, sa manufacturing, capital and labor yung ginagamit na factors.
Maipapakita ng isoquant yung favorable or best combination ng mga inputs na ito, para
makapag-produce ng same amount of output at minimum cost, of course para makapag-
generate yung company ng higher profit.

Usually, makikita yung factor na labor sa x-axis ng isoquant paragraph, at sa y-axis naman ang
capital. Sa ganito, makikita yung trade-off ng dalawang factor. Kung magkanong capital ba for
example yung marerequire para sa ganitong labor para makapag-produce ng same output. For
example, much labor requires more capital pero mas dadami yung mapoproduce. So, sa
isoquant graph, mapplot natin kung aling combination yung best for our production.

Next slide: Marginal Rate of Technical Substitution

The isoquant curve also demonstrates the principle of the marginal rate of technical
substitution, which shows the rate at which you can substitute one input for another, without
changing the level of resulting output. Sa marginal rate of technical substitution, ipinapakita yung rate
kung saan maaring makapag-substitute ng isang input for another ng hindi nagbabago yung resulting
amount of output. For example, the company decided to use a more advanced machineries
 other than sa ginagamit ngayon, sa MRTS mamemeasure yung additional cost or difference ng
ginawang substitution with consistent amount of outputs, therefore malalaman kung
anong best choice of substitution, malalaman kung anong machinery and mas worth it
gamitin as substitute.

It is computed using the formula as you can see in the presentation. L2 or labor engaged in the
second combination minus L1 or labor engaged in the first combination, over or divided
by K2 or the capital employed in the second combination minus K1 or the capital employed in the
first combination

Isoquant Map

An isoquant map is very similar to an indifference map. It can be formed while producing a
higher quantity of products from the various possible combinations of the two factors. It
facilitates multiple levels of output.

In the given figure we can assume that 1000 units of a product are produced in IQ1, 2000 units
in IQ2 and 3000 units in IQ3. Meaning, in the combinations, we can assume or conclude that
less labor requires higher capital, and with higher capital there is lesser labor. That is why the
MRTS keeps on falling at each combination. Thus, the isoquant curve also slopes downwards, as
shown in the picture, forming an inward curve or the concave curve.