CONCEPTS OF

ISOQUANTS AND ISOCOST

BY,
KIRAN YADAV
CHANDANA
SHRIVIDYA
ISOQUANTS

 Isoquant is called as equal product curve or production indifference

curve or constant product curve.
 Graphical representation of various combinations of inputs say
Labour(L) and capital (K) which give an equal level of output per
unit of time. 
 Q=f (L, K).
COMBINATION UNITS OF UNITS OF TOTAL OUTPUT
CAPITAL LABOUR
A 50 1 1500
B 45 2 1500
C 41 3 1500
D 38 4 1500
 GENERAL PROPERTIES
 Two isoquants do not intersect each other.
 No isoquant can touch either axis.
 Isoquant is oval in shape.
 Higher isoquants represents a larger
output.
 ISOCOST or EQUAL COST LINE.

 Isocost curve is the path traced by several combinations of L

and K,where each of them requires the same amount of
money for production.
 dK/dL =-w/r represents slope of isocost curve.
 ISOCOST LINE
• Provide possible combination of labour
and expenditure.
• Slope of line indicates factor price.
• Rs 200 for labour and capital ,if Rs 5
per unit for capital and Rs 4 per unit for
labor
• 25 units labor + 20 units capital
• 30 units labor + 16 units capital
• 12.5 units labor + 30 units capital
• 40 units capital
• 50 units labor
Thank you!