What is Total Product?
Total product (TP) is the total quantity of output a firm produces at a given level of input use. It measures the cumulative result of combining all inputs (labour, capital, materials) into finished goods or services. Understanding TP is key to grasping productivity and efficiency.
Total product is the entire quantity of output produced by a firm using a specific amount of inputs, often measured as units of output per time period.
Step-by-step worked examples
A bakery employs 5 workers and produces 100 loaves per day. What is total product?
Total product (TP) = 100 loaves per day with 5 workers TP measures the total output of the firm
A factory's output per month is: 1 worker → 50 units, 2 workers → 110 units, 3 workers → 150 units. Find TP with 2 workers.
Total product with 2 workers = 110 units (cumulative output of both)
An orchard harvest: 2 pickers collect 400 kg, 4 pickers collect 700 kg. What is total product per picker on average with 4 pickers?
TP with 4 pickers = 700 kg Average product = 700/4 = 175 kg per picker
Flashcards
Quick quiz
Q1.Total product measures…
Q2.If TP goes 0→50→100→140→170 with 1, 2, 3, 4, 5 workers, marginal product of 3rd worker is…
Q3.Total product increases but at a slower rate when…
Q4.Which shows the relationship between TP and quantity of input?
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Common mistakes
Total product is the same as average product. — Correct: TP is total output; AP = TP ÷ input quantity.
Marginal product and total product are the same. — Correct: MP is the extra output from one more unit; TP is the cumulative total.
If total product is high, the firm is always profitable. — Correct: Profits depend on costs and revenue; high output ≠ high profit if costs are high.
Total product always increases with more inputs. — Correct: TP typically increases but at a diminishing rate; in rare cases (congestion), it can fall.
FAQ
What is total product?
The total quantity of output a firm produces at a given level of input use.
How do you calculate total product?
Sum the output from all inputs employed, or read directly from the production function Q = f(L, K, ...).
What is the relationship between TP and MP?
MP is the slope of the TP curve — when MP is positive, TP rises; when MP is negative, TP falls.
Why does total product typically increase at a diminishing rate?
Due to the law of diminishing marginal product — as one input increases with others fixed, its productivity declines.