What does the average product measure in economics?

The average product measures the output produced per unit of input, typically focusing on labor. In this context, it is calculated by taking the total product—the overall amount of goods or services produced—and dividing it by the number of units of labor employed, such as the number of workers. This calculation gives a clear indication of how productive each worker is on average, allowing businesses and economists to assess efficiency in production processes. A higher average product suggests that labor is being utilized effectively, contributing to greater overall production relative to the number of workers involved.

The other options do not accurately represent the concept of average product. For example, multiplying total product by the number of workers would yield an incorrect interpretation and does not give meaningful insight into productivity per worker. Similarly, stating that total labor divided by output, or total output multiplied by hours worked, does not reflect the average product, as these calculations either invert the relationship or introduce unnecessary factors that dilute the focus on individual worker productivity.