An isoquant is the firm’s matching part of the consumer’s indifference curve. It is the collection of inputs in the form of factors of production labor (L) and capital (K), which yield the same output. For a definite output level the equation of the production function becomes
Q0 = f (L, K)
Where, Q0 is a parameter.
The locus of all the combinations of L and K, which satisfy the above equation, forms an isoquant. Since the production function is continuous, an indefinite number of input combinations will lie on each and every isoquant. The two factors of production are substitutable and we can employ more of one factor and less of another factor to get the same level of output. A higher level of output is represented by a higher isoquant. If we assume that the marginal productivities of both the factors of production are positive and decreasing as more of them are used, the isoquant will be downward sloping and convex to the origin.