Iso-cost line is a line showing all combinations of labour, L and capital, K that can be purchased or employed for the same cost. In other words, Iso-cost line shows us different combinations of labour and capital that a firm can buy given the total expenditure and the prices of factors of production.
If a firm has a total budget or total cost of C, the price of capital is r per unit and the price of labour is w per unit. Then, the equation of an iso-cost curve is given by:
The slope of an iso-cost curve is the negative of the input price ratio  "\left (-\frac{w}{r} \right )")
. The K-intercept is 
, which represents the amount of capital that may be purchased when all C dollars are spent on capital (i.e., zero labour is purchased).
Example:
If a firm has a total budget of $100 and the price of capital and labour is $25 respectively. The budget line can be written as:
Reading Lists:
1) Barthwal, R. R. (1992), Microeconomic Analysis (1st Edition). Wiley Eastern Limited, New Delhi, India.
2) Koutsoyiannis, A. (1990), Modern Microeconomics (2nd edition). Macmillan, London.
3) Henderson, J. M. and R. E. Quandt (1980), Microeconomic Theory: A Mathematical Approach (3rd edition). McGraw Hill, New Delhi.
4) Samuelson, P. A., & Nordhuas, W.D (1992), Economics (14th edition). McGraw Hill International edition, U.S.
5) Samuelson, P. A., & Nordhuas, W.D (2013), Microeconomics (19th edition). McGraw Hill Education (India) Pvt. Ltd.
6) Dwivedi, D. N. (2016), Microeconomics: Theory and Applications (3rd edition). Vikas Publication House Pvt. Ltd. Noida (UP), India.
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