isoquant

An isoquant is a graph that shows different combinations of two inputs, like labor and capital, which produce the same level of output or production. Think of it as a map where each line represents all the ways to make a certain amount of a product efficiently. Companies use isoquants to understand how changing input amounts affects production, helping them find the most cost-effective combination. Essentially, an isoquant helps visualize trade-offs between inputs while maintaining consistent output levels.