What is the definition of average product?

• Average product (AP) is a measure of the productivity of a firm's variable inputs, typically labor. It is calculated by dividing the total output (TP) by the quantity of variable input (L) used in production:
AP = TP / L
Key Points
-The average product, also known as the output per unit of factor inputs or the average of the total product per unit of input, is determined by dividing the Total Product by the inputs (variable factors).
Additional Information
-The average cost per unit of production (AC) is also known as the average total cost (ATC). Divide the total cost (TC) by the quantity produced by the company (Q) to find it. The average cost has a significant impact on how companies price their goods.
-Firms' sales of specific commodities are directly proportional to the size of the market and how their competitors choose to operate.
-With cost on the vertical axis and quantity on the horizontal axis, an average cost curve can be shown.
-The average fixed cost (AFC) is calculated by dividing the fixed costs of production (FC) by the quantity (Q) of output generated.
-The variable cost per unit is the average variable cost in economics. The entire variable cost is divided by the output to get the average variable cost.