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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