Average product of labor measures:
A)the addition to total output when an additional worker is hired.
B)total product divided by total cost.
C)the marginal product of the last worker multiplied by the wage rate.
D)total product divided by the wage rate.
E)total product divided by the quantity of labor.

Question

Quizplus · Accepted Answer

The average product of labor measures the total output produced by all workers divided by the quantity of labor used in the production process. It gives an idea of the productivity of each worker on average. Therefore, option E is the correct answer. Option A refers to the marginal product of labor. Option B is unrelated to the concept of average product of labor. Option C is the calculation for the total cost of hiring the last worker. Option D is the calculation for the total number of labor hours that can be acquired with the wages paid.

Average Product of Labor Measures