ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Average product (AP), also called average product of labor (APL), is total product (TP) divided by the total quantity of labor. It is the average amount of output each worker can produce.

Detailed explanation-2: -Answer and Explanation: The total output divided by the quantity of labor employed is called the labor resource productivity because it denotes the average output or product produced by deploying one unit of labor hour. This ratio is sometimes even referred to as the average product of labor.

Detailed explanation-3: -It is defined as the output per unit of factor inputs or the average of the total product per unit of input and can be calculated by dividing the Total Product by the inputs (variable factors).

Detailed explanation-4: -Average product can be calculated by simply dividing the total product by the variable inputs.

Detailed explanation-5: -Average product is the ratio of units produced compared with units required to produce the products. To simplify, take an example of a company producing 100 products with 10 workers/labourers; labour is a variable of input, then the average product is 10.