Formula

Formula for Average Product of Labor

The average product of labor (APL) is a measure of output per unit of labor, calculated by dividing the total output by the total amount of labor. This relationship can be expressed with the formula: Average product of labor=Total outputTotal number of workers\text{Average product of labor} = \frac{\text{Total output}}{\text{Total number of workers}} In the context of an aggregate economic model, this is often represented more formally as: APL=YN\text{APL} = \frac{Y}{N} where YY is the total output and NN is the total employment.

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Updated 2025-10-03

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