Glossary · Micro · Production and costs

Average product of labor (APL)

Output per worker: total output divided by the number of workers. Marginal product pulls it up when the newest worker is more productive than the average and pulls it down when less, so marginal product crosses average product at its peak.

Also called: APL, average product, labor productivity

Taught in: Average Product and the Stages

Related terms

Marginal product of labor (MPL)Law of diminishing marginal returns

More from production and costs

Average fixed cost (AFC)Average total cost (ATC)Average variable cost (AVC)Cobb-Douglas production functionEconomies and diseconomies of scaleFixed cost (FC)Isoquant

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