An isoquant curve is a concave line plotted on a graph showing all the different combinations of two inputs that result in the same amount of output.
Most often, the isoquant shows a combination of capital and labor and a technological compromise between them.
The isoquant curve helps companies and businesses make adjustments to their manufacturing operations to produce more goods at a lower cost.
The isoquant curve demonstrates the principle of the marginal rate of technical substitution, which shows the rate at which you can replace one input with another without changing the level of the resulting output.
All isoquant curves have seven basic properties, including the fact that they cannot touch or intersect each other, tend to slope downwards, and curves representing higher output are higher and to the right.