Average yield
In microeconomics , the average yield (also: average product , average productivity ) of a factor is the average production volume for a factor unit. Average yields are calculated as the production result through the use of factors. Both values can be units of value as well as units of measure.
Parameters
Hour productivity is an important economic parameter. It is calculated by using the gross domestic product for the production result and the work volume (total of all hours worked) for the factor input. The capital productivity is analogous from the GDP and the value of capital stock calculated.
The reciprocal values of labor productivity (AP) and capital productivity (KP) are called the labor coefficient and capital coefficient, respectively . The capital intensity (k) links the two productivities to the tautological relationship: AP = k * KP.
The average yield is maximum when it is equal to the marginal yield. If the marginal yield is above (below) the average yield, the (partial) production elasticity is greater (less) than one.
