Definition: An Iso-Quant curve is the geometrical representation of the different combinations of input factors employed to produce the given level of output.
Types of Iso-quant Curves
The iso-quant curves can be classified on the basis of the substitutability of factors of production. These are:
- Linear Iso-quant Curve: This curve shows the perfect substitutability between the factors of production. This means that any quantity can be produced either employing only capital or only labor or through “n” number of combinations between these two.
- Right Angle Iso-quant Curve: This is one of the types of iso-quant curves, where there is a strict complementarity with no substitution between the factors of production. According to this, there is only one method of production to produce any one commodity. This curve is also known as Leontief Iso-quant, input-output isoquant and is a right angled curve.
- Kinked iso-quant Curve: This curve assumes, that there is a limited substitutability between the factors of production. This shows that substitution of factors can be seen at the kinks since there are a few processes to produce any one commodity. Kinked iso-quant curve is also known as activity analysis programming iso-quant or linear programming iso-quant.
- Convex Iso-quant Curve: In this types of iso-quant curves, the factors can be substituted for each other but up to a certain extent. This curve is smooth and convex to the origin.
Thus, the classification of the iso-quant curve can be done on the basis of the number of labor units that can be substituted for capital and vice-versa, so as to have the same level of production.
Zahid says
Which one is realistic?