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.
In production theory, an isocost line represents all combinations of inputs that can be purchased for a given total cost, reflecting the budget constraint faced by a producer. An isoquant, on the other hand, shows all combinations of inputs that yield the same level of output, illustrating the production possibilities available to a firm. The intersection of isocost and isoquant lines helps determine the optimal input combination for cost-effective production. Together, they aid in analyzing the trade-offs and efficiency in resource allocation.
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.