Isoquants

Isoquants are lines on a graph that represent different combinations of two inputs—like labor and capital—that produce the same level of output. Think of them as contour lines on a map, but instead of elevation, they show consistent production levels. They help businesses understand how they can substitute one input for another without changing the total output. For example, if more machines are added, fewer workers might be needed to produce the same amount. Isoquants are useful for analyzing production efficiency and making decisions about resource allocation.