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Production Function: What is Production? Factors of Production and Total Physical Product
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In this lesson we will be talking about what is Production, factors of production and total production in full detail.

Sanchit Gupta
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  1. Production Function What is Production, Factors of Production and TPP Course 8 Lesson 1 Created by Sanchit Gupta All rights reserved and copyrighted

  2. Production Function Production: Production is the transformation of physical input into physical out. For example: when we got wheat on a plot of land with the help of inputs like labour, capital and seeds, it is termed a production of wheat. Factors of Production or Factor Inputs: The resources needed to produce goods and services are termed as factors of production or factor inputs. For example land, labour and capital, etc. Total Physical Product (TPP or TP) or Total Return: TPP is the total output at a particular level of employment of an input when employment of all other inputs are unchanged. Created by Sanchit Gupta All rights reserved and copyrighted

  3. Total Physical Product Total product of a factor is the amount of total output produced by a given amount of the factor, other factors held constant. As the amount of a facto increases, thetotal ouput increases. amount of a factor increases, the total output increases. TPP = MPP OR TPP=APPXN N= number of units of a variable factor Created by Sanchit Gupta All rights reserved and copyrighted