The average product of labour is defined as
A) The additional output produced by the last ∆L units of labour hired
B) The amount of output divided by the amount of capital used to produce the output
C) The amount of output produced multiplied by the last ∆L units of labour hired
D) The amount of output divided by the number of workers employed

Question

Quizplus · Accepted Answer

The average product of labour (APL) is calculated by dividing the total output produced by the number of workers employed. In other words, it measures the average amount of output produced per worker. Option A defines marginal product, option B defines capital productivity ratio, and option C is a confusion between output and employment.

The Average Product of Labour Is Defined as