Question

what is the difference between isoquant and isocost.

Answer 1

Isoquant represents the combination of capital units and labour units that can together produce a given level of output. For example, two units of labour and three units of capital can produce the same level of output that three units of labour and two units of capital can. Connecting these two points will result in an isoquant.

Isocost represents a budget line representing the cost of production using labour and capital. The cost of production remains same throughout the isocost line. It is basically the sum of of expenditure on capital units and expenditure on labour units.