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. Total product indicates that volume of goods and services produced during a specified period of time in a given year
Average Product Edit
d as: Therefore allowing one to attain the following results:
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.