The average product of labour is
A)the inverse of the average product of capital.
B)the slope of the marginal product of labour curve.
C)the slope of the total product curve.
D)greater than the marginal product of labour.
E)calculated as total product divided by the total quantity of labour employed.

Question

Quizplus · Accepted Answer

The average product of labour is calculated by dividing the total product (output) by the total quantity of labour employed. It gives the average output per unit of labour. Therefore, option E is the correct choice. Option A is incorrect because there is no direct relationship between the average product of labour and the average product of capital. Option B is incorrect because the slope of the marginal product of labour curve gives the marginal product of labour, not the average product of labour. Option C is incorrect because the slope of the total product curve gives the marginal product of labour, not the average product of labour. Option D is incorrect because the marginal product of labour is always greater than the average product of labour, due to the law of diminishing marginal returns.

The Average Product of Labour Is