Isoquant curve is the locus of various combinations of two inputs labor and capital that yield the same level of output. It means every point of an isoquant curve shows an equal level of output. This short article tries to explain the concept of an isoquant curve map or isoquant map.
We assume that producers are rational, and the rationality of producers is that they always want to produce as much as possible from the given amount of total cost outlay and prices of inputs to maximize the profit. The different levels of output are represented by different isoquant curves. The higher the isoquant higher the level of output. The isoquant that is far from the origin is known as a higher isoquant and near to the origin is known as a lower isoquant.
The higher the isoquant, the higher will be the employment of either labor or capital or both factors, and thus farther the isoquant from the origin, the more is output. Every rational producer wants to reach a possible higher isoquant, but such motive of the producer is confined by the available amount of total cost. Thus, there is always a given isoquant curve map for every producer of goods and services.
Now we can define an isoquant curve map as the collection of isoquant curves in a single diagram. It means that an isoquant curve map is a set of iso-quants collected in a single diagram. It represents different production plans that the producers plan to produce.
We already mentioned that a higher iso-quant shows a higher level of output as it consists of more quantities of inputs. The isoquant curve far from the origin is known as the higher isoquant curve and near the origin is known as the lower isoquant curve. It can be shown in the following diagram.
The above diagram shows an isoquant curve map as there are different isoquant curves represented by IQ1, IQ2, and IQ3. IQ1 is the lowest isoquant curve, and it represents the lowest level of output and IQ3 is the highest isoquant and represents the highest level of output. The higher isoquant IQ3 includes more units of both labor and capital than that of the lower isoquant curve IQ1.