Isoquant is the various combination of input for production while isocost is all combination of input which cost same amount.
All the combination of capital and labour that can be used to produce a given amount of output is called an isoquant.All the combinations of capital and labour that are available for a given cost is called an isocost.
producers equilibrium is achieved with isoquants and isocost curves
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the answer
Isocost is the locus of all combinations of factors of production the firm can purchase with a given monetary cost outlay. Isoquant is the locus of all the technically efficient methods or all the combinations of factors of production for producing a given level of output.
Linear isoquant [perfect substitutability of factors of production], Input-output isoquant or Leontif isoquant [no substitution or strict complementarity; only one efficient method of production] are exceptions to isoquant convexity to the origin. Kinked isoquant is of limited substitutability at kinks. But if kinks come closer and closer, it will become a smooth curve, convex to the origin.
l Characteristics of isocost curves:Ø An infinite number of isocost curves exist. One for each level of total cost.Ø The slope of the isocost curve is equal to the negative of the relative input price ratio, . This ratio is important because it tells the manager how much capital must be given up if 1 more unit of labor is purchased.
negative slope, convexity to its origin
show how the price elasticity of demand is graphically measured along a liner demand curve?
effect of isocost
indifference curve is a combination of two commodities. where as, isoquant curve shows a relationship between of variable factor i.e. labour and fixed factor i.e. capital.
Linear Isoquant: This type assumes perfect substitutability of factors of production: a given commodity may be produced by using only capital, or only labour, or by an infinite combination of K and L.Input-Output Isoquant: This assumes strict complementarity[that is, zero substitutability] of the factors of production. The isoquant take the shape of a right angle. This type of isoquant is also called 'Leontief isoquant' after Leontief, who invented the input-output ananlysis.Kinked Isoquant: This assmes limited substitutability of K and L. There are only a few processes for producing any one commodity. Substitutability of factors is possibleonly at the kinks. This form is also called 'activity analysis-isoquant' or 'linear-programming isoquant', because it is basically used in linear programming.Smooth , Convex Isoquant: This form assumes continuous substitutability of K and L only over a certain range, beyond which factors cannot substitute each other. The isoquant appears as a smooth curve convex to the origin.