The cost theory of microeconomics includes a study of total, average and marginal product.

## Total ProductEdit

__ Total product__ : is defined as the total quantity of output produced by a firm in the given inputs.

TP= AP X L

TP= SIGMA MP

Where, AP is averege Product

TP is total product

MP is marginal product

L is labour

## Average ProductEdit

__ Average Product__ is defined as the Average produced by every worker.

when we divide the total product by output we get average product .

APL=TP/L

IN the same way, we calculate the average physical product of capital

APk=TPk/K

## Marginal ProductEdit

"The net change in total production by using the additional units of labor is known as Marginal product mulitplied by 10 lots of Labor" __' Marginal Product__

**is similar to average product but is looked at from another perspective. Discrete marginal product is defined as the change in total product that comes as a result of a one unit increase in the variable input/capital level of a firm. Continuous marginal product is calculated as the derivative of total product with respect to the variable input employed. This can be represented 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.

5