[Commerce Class Notes] on Shapes of Total Product, Average Product and Marginal Product Pdf for Exam

The shape of the total product curve is used to determine teamwork by using variable inputs with predetermined input. Total Product or TP also represents the total amount of result or output than a firm can produce within a given time and amount of labour. It is essential to know that the amount of work can change with the change in output as well.

This section will help a student understand the relationship between TP and MP and how it affects the production and cost shapes. 

Factors Determining Total Product Average Product and Marginal Product

Before understanding the essential functions of production and cost shape, the terms like TP AP MP must be distinguished.

What is Total Product or TP?

Total product is the total amount of output made with a given amount of input during a period. A firm wanting a rise in the total product in the shortest time or short-run can increase its variable factors as fixed factors will remain the same.

It is essential to know that in long-run factors become variable and a firm can increase its total product by increasing its characteristics. These factors gradually become inconsistent, and the concept of total products aids in understanding the marginal product.

What is Marginal Product or MP?

A marginal product can be determined by calculating total product and adding marginal returns. The rise in output per unit and the increase in the input is called a marginal effect. If one takes labour as input for production, then a marginal product can be calculated by using this formula.

MP = Change in output divided by change in the input

TP = ƩMP

What is Average Product or AP?

The average product is the per-unit total of a product with a variable factor which can be taken as labour. The calculation of average production can be done with the formula-

AP = Total Product divided by units of variable factor input 

AP= TP/L

It can also be calculated by TP = AP x L

What Is The Relationship Between TP AP and MP?

In the above diagram, the TP curve rises at an increasing way after which it gradually rises but at a decreasing rate. This gives the S-shaped, which shows a trend continuing till TP reaches max. Here MP is zero after which TP starts to decrease 

In the MP curve, there is even a gradual rise which reaches max and then falls. It is essential to know that when MP is maximum at the point, TP starts to rise in a diminishing way. Here MP is negative while TP remains positive even at its fall.

Now the AP curve shows similar characteristics as MP. It starts to increase and reaches max to fall. At this point, AP rises to its highest level. Here AP becomes equal to MP.

Here the relationship between AP and MP as well as TP is seen in inverted U shape.

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