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Total Product Edit

Total product :

Total product (TP) is the total output a production unit can produce, using different combination of factors of production. Diagram 1: As the amount of labor goes up, the total output or total product goes up.

Average Product Edit

Average

d as: Therefore allowing one to attain the following results:


(dTP)/(dVI)=MP

where TP is total product, MP is marginal product and VI is variable inputs. The analysis of marginal product is foundational to explaining the law of supply (upward-sloping supply curve) via the Law of Diminishing Marginal Returns.

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