Total product: It is total output produced by all the units of a variable factor used in the production process along with some portion of the fixed factors. For example, by deploying 7 units of labour along with a fixed factor, say land, for production, their total product can be calculated by adding their individual contributions, like 8+12+15+18+22+25+25 = 125.
Marginal product:
It is the additional unit of output achieved by employing an additional unit of variable factor, like, Labour.
The formula for MP is,
MP nth = TPn- TPn-1
Average Product:
It is the per unit output of the variable factor employed in the process of production.
For example, if 6 units of labour are producing 30 units of output, the AP will be:
AP =Total product /Labour
AP =30 /6 =5
AP=5
| Units of labour | Total product | Average product | Marginal product |
| 1 | 60 | 60/1 = 60 | 60 |
| 2 | 90 | 90/2 = 45 | 30 |
| 3 | 117 | 117/3 = 39 | 27 |
| 4 | 140 | 140/4 = 35 | 23 |
| 5 | 150 | 150/5 = 30 | 10 |
| 6 | 150 | 150/6 = 25 | 0 |
| 7 | 140 | 140/7 = 20 | -10 |