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Total Product (TP):
Total product is the amount of output produced in physical units from the input of x1 if x2 is assigned the fixed value of x2o.
Figure: Total product curve
Each curve gives the relationship between q & x1 for a different value of x2o.
Average product (AP):
Ap is the quantity of total output produced per unit of a variable input, holding all other inputs fixed. It is found by dividing total product by the quantity of the variable input.
AP = q/x1 = f (x1, x2o)/x1
Marginal Product (MP) :
MP is the change in the quantity of total product resulting from a unit change in a variable input, keeping all other inputs unchanged. It is found by dividing the change in total product by the change in the variable input.
MP = δq/δx1 = f1 (x1, x2o)
Source:
1. Class Note
2. Amosweb
Total Product (TP):
Total product is the amount of output produced in physical units from the input of x1 if x2 is assigned the fixed value of x2o.
Each curve gives the relationship between q & x1 for a different value of x2o.
Average product (AP):
Ap is the quantity of total output produced per unit of a variable input, holding all other inputs fixed. It is found by dividing total product by the quantity of the variable input.
AP = q/x1 = f (x1, x2o)/x1
Marginal Product (MP) :
MP is the change in the quantity of total product resulting from a unit change in a variable input, keeping all other inputs unchanged. It is found by dividing the change in total product by the change in the variable input.
MP = δq/δx1 = f1 (x1, x2o)
Source:
1. Class Note
2. Amosweb
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