The Average Product of Labor is Question 17 options: A) the ratio of output to the number of workers used to produce that output. B) the amount of output that can be produced by a given amount of labor. C) the change in total product resulting from an extra unit of labor, holding other factors constant. D) equal to the marginal product of labor when the average product is increasing.

A. The ratio of output to workers used to produce that output

Explanation:

Average Product (AP) : This is the output per unit of factor input. It is the average of the total product per unit of output.

Average Product = Total Product / Units of Variable Factor Input

Average product of labor is the output produced per units of labor.

That is,

Average product of labor (APL) = Total product / units of labor

Example: suppose a firm produce a total output of 300 units using 30 workers. Find the average product of labor

Solution

Average product of labor = Total output/units of labor

Total output = 300 units

Units of labor = 30 workers

Therefore,

Average product of labor = 300 units/30 workers

=10 units per worker.

Total product is the total amount of output produced at a given amount of inputs.