How do you calculate the average product of labor?

Question

Quizplus · Accepted Answer

The average product of labor is calculated by dividing the total output produced by the total units of labor employed. This gives an indication of the productivity of each individual worker, and is an important measure of efficiency in a production process. Option A is incorrect because it does not take into account the productivity of labor, and simply divides total inputs by total output. Option B is incorrect because it multiplies the average number of workers by the average level of output, which is not a commonly used calculation for the average product of labor. Option D is incorrect because it reverses the calculation, dividing labor input by output, which would give a measure of capital productivity instead. Option E is also incorrect because it multiplies the average number of labor units employed by the quantity of capital employed, which is not a commonly used calculation for the average product of labor.

How Do You Calculate the Average Product of Labor