Production Analysis — Economics STD 11 — Question

Definition of Iso – quant:
According to Ferguson, “An Iso – quant is a curve showing all possible combinations of inputs physically capable of producing a given level of output”.Assumptions:

1. It is assumed that only two factors are used to produce a commodity.
2. Factors of production can be divided into small parts.
3. The technique of production is constant.
4. The substitution between the two factors is technically possible. That is, the production function is of a “variable proportion” type rather than a fixed proportion.
5. Under the given technique, factors of production can be used with maximum efficiency.