AP is output per unit of ______ factor. • Average Product is output pe
| AP is output per unit of ______ factor.
A. variable
B. total
C. fixed
D. marginal
Right Answer is: A
SOLUTION
• Average Product is output per unit of variable factor.
• It is obtained by dividing TP by units of variable factor.
• Hence, Average Product (AP) = Total Product (TP) / Units of Variable factor
• Total Product (TP) = Average Product (AP) *Units of Variable Factor
• For example, if Total Product (TP) is 100 kg of wheat, produced by 20
men then average product will be 100 /20 = 5 kg.
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