Right-Angle Isoquant

A right-angle isoquant represents the relationship between two productive inputs in a fixed-proportion production function. In this type of function, the inputs must always be used in the same ratio, regardless of the level of output. As a result, isoquants take on a distinctive L-shape, as illustrated below.

In general, an isoquant maps out different combinations of production inputs that yield the same level of output (Y). However, with right-angle isoquants, the two inputs exhibit perfect complementarity, meaning they must always be used together in a fixed proportion (a characteristic of fixed-coefficient production functions). Increasing the use of one input without increasing the other has no effect on output. In this case, the elasticity of substitution between the inputs is zero.