Discuss the concepts of isoquant with suitable illustration
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An isoquant is a locus representing different combinations of two factors (say labor and capital) which yields the same level of output to the producer. It slopes downwards to the right as a rectangular hyperbola. It is due to the operation of the law of diminishing marginal rate of substitution. The term 'Iso-Quant' has been derived from a greek word ‘Iso’ meaning equal and Latin word ‘quant’ meaning quantity. Hence, an isoquant represents a constant quantity of output at a different combination of inputs. The isoquant curve is also known as a “Production Indifference Curve” as well as “Equal Product Curve” as well as "Iso-Product Curve.
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