Isoquant Analysis

The analysis shows various combinations of factors of production that can produce a certain amount of output.
Assumptions
• There are only 2 factors of production.
• Technology remains same.
Explanation
There are only 2 factors of production, labour and capital. Combining labour and capital produces output. The given table shows the same quantity of output that can be produced with the different combinations of these 2 inputs.

Table showing different combinations of 2 inputs producing same level of output

Combinations	Labour	Capital	Units of output
A	3	20	50
B	4	15	50
C	6	10	50
D	10	6	50
E	15	4	50
F	20	3	50

The above table , displayed in the form of a curve would look like –


• The Graphical representation of all the combinations of 2 inputs , producing same level of output is called an isoquant curve.
• An isoquant curve is always technically efficient.