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What is isoquant
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Rishab Soni Best Answer
in economics, an isoquant is drawn on two axis to represent the same output derived by different combinations of the axes. in which, reducing one value will increase the other value and vice versa. For example producing 1 house requires 5 days and 5 labours. Now the same 1 house can be prepared in 6 days with 4 labours in 7 days with 3 labours (hypothetical example) and so on. We can plot these points in a graph and get the isoquant crossing the lines (5,5) (6,4) (7,3) etc.. in simple terms isoquant is derived from two words. iso and quant meaning same quantity. So it is a graphical representation of two factors which produce the same quantity of output (like my previous example) Isoquant is generally used to calculate marginal rate of substitution (MRS) where you maximize your utility of available resources via finding the perfect and most suitable combination of factors, such as most suitable combination of labour and capital for profit maximization.
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Arsha
thank you