Correct option is C
The correct answer is: (C) Average product
Average product is defined as the output per unit of variable input. It is calculated by dividing the total product (total output) by the quantity of the variable input used. Mathematically:
Average Product (AP)=Total Product (TP)Units of Variable Input\text{Average Product (AP)} = \frac{\text{Total Product (TP)}}{\text{Units of Variable Input}}Average Produc
For example, if a worker produces 50 units of output and there are 5 workers (labor as the variable input), the average product would be:=10units per worker.
Information booster:
Other Options | Explanation |
A. Total product | Total product refers to the total quantity of output produced by a given amount of input. It is not measured per unit of input. |
B. Minimum product | This is not a standard economic term. There is no concept called "minimum product" in production theory. |
D. Marginal product | Marginal product refers to the additional output produced by using one more unit of the variable input. It is not an average measure. |