Isoquant Curve

An isoquant curve represents all the different combinations of two inputs, such as labor and capital, that produce the same level of output. Think of it as a map showing various ways to achieve the same production goal by adjusting input quantities. Moving along the curve, increasing one input typically requires decreasing the other to maintain the same output level. Isoquants help businesses understand how to substitute between inputs efficiently, aiding in optimizing resources to produce a desired amount of goods or services.