Question

In 2014 American Electric Power (AEP), an electric utility with operations from Texas to Michigan, produced 207 million megawatt-hours of electricity (a megawatt-hour measures the output of an electricity-generating plant). The company also had 16,000 U.S. employees.What is average product of the AEP?

Answer 1

12,937.5 megawatt-hours of electricity per employee

Step-by-step explanation:

Average product is the output produced per unit of input. In this case the total output is 207,000,000 megawatt-hours of electricity and the variable input is the number of employees (16,000).

Average product = 207,000,000 megawatt-hours of electricity / 16,000 employees = 12,937.5 megawatt-hours of electricity per employee

*When you are measuring average product per employee, the term that is generally used is labor productivity, sounds a little better.