- Food producer has 2 inputs
1) For any level of K, output increases with L.
2) For any level of L, output increases with K.
3) Various combinations of inputs produce same output.
- Curves which is showing all the possible combinations of inputs which yield the same output
Production Function for Food
Production with the Two Variable Inputs (L,K)
- The isoquants stress that how different input combinations can be used to produce same output.
- This information allows producer to respond efficiently to changes in markets for inputs.