GENERAL KNOWLEDGE

Detailed explanation-1: -An isoquant shows all combinations of factors that produce a certain output. An isocost show all combinations of factors that cost the same amount.

Detailed explanation-2: -An isoquant is a curve that shows all the combinations of inputs that yield the same level of output. ‘Iso’ means equal and ‘quant’ means quantity. Therefore, an isoquant represents a constant quantity of output.

Detailed explanation-3: -An isoquant is analogous to an indifference curve in more than one way. In it, two factors (capital and labour) replace two commodities of consumption. An isoquant shows equal level of product while an indifference curve shows equal level of satisfaction at all points.

Detailed explanation-4: -Thus, an isoquant is a curve showing all combinations of labor and capital that can be used to produce a given quantity of output. An isoquant map is a set of isoquants that shows the maximum attainable output from any given combination inputs.