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Question
What is the average product of an input?
Solution
Average product is defined as the output produced by per unit of variable factor (labour) employed. Algebraically, it is defined as the ratio of the total product by units of labour employed to produce the output, i.e. `"AP =" "TP"/L`
Where,
TP = Total product
L = units of labour employed
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RELATED QUESTIONS
Giving reasons, state whether the following statements are true or false:
(i) Average product will increase only when marginal product increases.
(ii) With increase in level of output, average fixed cost goes on falling till it reaches zero.
(iii) Under diminishing returns to a factor, total product continues to increase till marginal product reaches zero
The following table gives the marginal product schedule of labour. It is also given that total product of labour is zero at zero level of employment. Calculate the total and average product schedules of labour.
|
L |
MPL |
|
1 |
3 |
|
2 |
5 |
|
3 |
7 |
|
4 |
5 |
|
5 |
3 |
|
6 |
1 |
