Total product (TP) refers to the complete amount of output a business produces by using a specific quantity of variable inputs, such as labour.

The formula is: TP = f(L), where TP is a function of the labour input.

Key features include:

• TP increases as more workers are added, though the rate of growth changes from fast to slow over time.
• The TP curve serves as the base for calculating marginal product (MP) and average product (AP).
• It is a short-run concept, meaning at least one production factor, such as machinery or capital, remains fixed.

How TP relates to Marginal Product (MP):

• If TP rises at an increasing rate, MP is rising.
• If TP rises at a decreasing rate, MP is falling but remains positive.
• If TP begins to fall, MP becomes negative.

Relationship with costs: TP helps determine variable costs. Generally, when there is less TP produced per worker, the variable cost per unit increases.