How is the value of the average product

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

How is the value of the average product calculated in the short-run?

Options:

By dividing the total product by the number of labor.

By dividing the change in total product by the change in labor.

By dividing the change in total product by the number of labor.

By dividing the total product by the change in labor.

Correct Answer:

By dividing the total product by the number of labor.

Explanation:

The correct answer is Option (1) → By dividing the total product by the number of labor.

Average Product (AP)= Total Product (TP) / Units of labour (L)