Definition of Isoquant, Types of Isoquant , full explanation

Isoquant: An isoquant is a curve which shows the different combinations of two inputs which required to produce a given level of output.

The shapes of isoquants depends on the nature of the substitutability of the factors of production.

1. Linear Isoquants

This type of isoquant assumes perfect substitutability of factors of production. Because a given commodity may be produced by using different combinations between the inputs factors. It may be only labor, or only capital, or by infinite different combinations between labor and capital.

2. Smooth Convex Isoquants

This form of isoquants assumes continuous substitutability of factors of capital and labor overs certain range, beyond which factors of input factors of production cannot be substituted.

3. Kinked Isoquants

This type of isoquants assumes limited substitutability of input factors of production. There are only a few processes for producing a given level of output. This types of isoquants is also known as activity analysis isoquants or linear programming isoquants.

4. Input-Output Isoquants:

This types of isoquants assumes strict zero substitutability of input factors of production. This type of isoquant takes the shape of a right angle and also called 'Leontief Isoquant' after Leontief who invented the input-output isoquant.