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## SS2: ECONOMICS - 1ST TERM

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#### Quizzes

Lesson 6, Topic 3
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# Concepts of Production

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#### Topic Content:

• Total Product (TP)
• Average Product (AP)
• Marginal Product (MP)
• Relationship between Total Product, Average Product and Marginal Product

### 1. Total Product (TP):

This is the summation of the quantity of commodities produced by a firm at a period of time by all factors of production put together in a production process. The upward sloping of the TP curve states that output increases as more units of labour are employed, while the fixed factor (land) remains constant.

TP = AP × Labour.

Where AP = Average Product, L = Unit of Labour

### Example 6.3.1:

If 60 men were employed in an oil firm and they produce 20 barrels of crude oil per person, calculate the total product.

Solution:

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