Theory of traditional production is explain the relationship of input output based on the production function Which show it to all production line data. The average yield and yield increase.
Total product (total product: TP) refers to the total output that can be produced from the variable number one, with fixed factors existing in the moment.
(Average product: AP) means the number of output has easy-to-use variable factors 1 unit, which is combined the output divided by the number of variable factors using.
(Marginal product: MP) refers to the total output change when using variable factors change 1 units.
(Stage of production)
The 1 starting points 0 to AP was highest, at this stage, when adding factors modulate variable passive MP will increase. (AP > MP) apply to yield total (TP) increase at an increasing rate (Increase at Increasing).
The 2 starting from highest to AP MP equals 0 this stage and MP AP will begin to decrease, but total output (TP) will continue to increase. The peak until the receding from the MP = 0.
The 3 starting MP was 0 or TP maximum. This stage when added to another variable factor will apply to yield the total (TP). Decreased passive and MP deficit.
(Isoquant curve: Iq) is a line that represents a mixture of factor of production 2 species in different rate, the production rate to produce goods. Using the K L.
(Marginal Rate of Technical Substitution: MRTS) is the ratio of the difference between the number of inputs, one that reduced the number of inputs and one on the rise. The number of output is still the same.