Characteristics of an isoquant:
1. The isoquant is downward sloping from left to right that is, it is negatively sloped.
2. An isoquant is convex to the origin since of the reducing marginal rate of technical replacement. Marginal rate of technical replacement of factor X (i.e., capital) for factor Y (i.e., labor) might be stated as the amount of factor Y (i.e., labor) that can be substituted by one unit of factor X (i.e., capital), the level of output enduring unchanged.
MRTS CL = Δ L/ Δ C
MRTS can be computed employing the above formula:
Therefore the marginal rate of technical replacement is always diminishing. Therefore the isoquant is always convex to the origin. The slope of the isoquant symbolizes marginal rate of technical replacement.
Higher the isoquant, higher will be the level of output formed. A set of isoquants that symbolizes various levels of output is termed as “isoquant map”. In isoquant map, the isoquants on the right side symbolize higher levels of output and vice-versa.
Figure: Isoquant map
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