How to calculate total product average product and marginal product?
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Total product: It refers to the total amount of commodity produced by the combination of all inputs in a given period of time.
i.e. TP = AP×N
where
TP= Total Product
AP= Average Product
N= Total units of inputs employed
Summation of marginal products
Average Product (AP):
An average product is the outcome of the total product divided by the total units of the input employed. It refers to the output per unit of the input.
AP= TP/N
where,
AP= Average Product
TP= Total Product
N= Total units of inputs employed
Marginal Product (MP):
it is the ratio of the change in the total product with the change in the units of the input.
MP = ΔTP/ΔNwhere,
MP= Marginal Product
ΔTP= Change in total product
ΔN= Change in units of input
i.e. TP = AP×N
where
TP= Total Product
AP= Average Product
N= Total units of inputs employed
Summation of marginal products
Average Product (AP):
An average product is the outcome of the total product divided by the total units of the input employed. It refers to the output per unit of the input.
AP= TP/N
where,
AP= Average Product
TP= Total Product
N= Total units of inputs employed
Marginal Product (MP):
it is the ratio of the change in the total product with the change in the units of the input.
MP = ΔTP/ΔNwhere,
MP= Marginal Product
ΔTP= Change in total product
ΔN= Change in units of input
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