Total Product, Marginal Product, Average Products in Economics Class 11 Notes
Total product class 11 notes give a comprehensive understanding of the concept. Product or output refers to the volume of goods produced by a firm or an industry during a specified time. The concept of product can be considered from three different angles – Total Product, Marginal Product, and Average Product.
Total Product class 11
Total Product (TP) refers to the total quantity of goods produced by a firm during a given period of time with the given number of inputs. For example, if ten labourers produce 60 kg of rice, the TP is 60 kg.
In the short run, a firm can expand TP by increasing only the variable factors. However, in the long run, TP can be raised by increasing both fixed and variable factors. TP is also known as ‘Total Physical Product (TPP),’ ‘Total Return,’ or ‘Total Output’.
Marginal Product (MP)
Marginal Product (MP) refers to the addition to TP when one more unit variable factor is employed. MP can be written as,
MPn = TPn – TPn-1
Where,
MPn = MP of nth unit of a variable factor
TPn = TP of n units of variable factor
TPn-1 = TP of (n-1) units of variable factor
n = number of units of variable factor
For example, if ten labourers make 60 kg of rice and 11 labourers make 67 kg of rice, then the MP of the 11th labourer will be
MP11 = TP11 – TP10
MP11 = 67-60 = 7 kg
We now know that MP is the change in TP when one more unit of a variable factor is employed. However, when a change in variable factor is greater than one unit, then MP can be calculated as,
MP = Change in TP/ Change in units of Variable Factor
MP = ΔTP/Δn
Suppose ten laborers produce 60 units, and five laborers produce 90 units; then MP will be,
MP = 90-60/5-2 = 30/3 = 10 units
Average Product (AP)
Average product (AP) refers to output per unit variable input. For example, if TP is 60 kg of rice produced by ten labourers (variable input), then AP will be 60/10 = 6 kg.
AP is obtained by dividing TP by the number of units of variable inputs. AP can be written as,
AP = TP/Units of variable factor (n)
Conclusion
Total product class 11 notes are presented in this post for easy access to the students. These notes improve focus and attention to detail. Promotes active learning. Boosts comprehension and retention. Teaches prioritizing skills. Extends attention span. Improves organization skills. Increases creativity. Thus, they provide an opportunity to learn and summarize the concepts.
Unit 6: Producer Behaviour and Supply
- Concept of Production Function
- Total Product, Marginal Product & Average Product
- Law of Variable Proportion
- Relationship Between Total Product Average Product and Marginal Product