Use the Following Table, Showing the Total Output Produced with Various

question 94

Short Answer

Use the following table, showing the total output produced with various levels labor and each of two levels of capital to answer the questions.
Units of Capitel
$\begin{array}{l}\text { Units of }\\\begin{array}{ccc}\text { Labor } & \mathrm{K}=2 & \mathrm{~K}=4 \\\hline 1 & 20 & 40 \\2 & 50 & 100 \\3 & 70 & 140 \\4 & 80 & 160\end{array}\end{array}$
-When capital is fixed at 2 units
a. AP decreases after the ______ unit of labor. MP decreases after the ______ unit of labor.
b. At L = 2, AP = ______ and MP = ______.
c. At L = 3, AP = ______ and MP = ______.
d. At L = 4, AP = ______ and MP = ______.

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Definitions:

Amortized

The process of paying off debt through regular payments over a set period, where the payments cover both principal and interest.

First Three Years

Referring to the initial period of three years from a specific start point, often used in the context of forecasting, planning, or analyzing early-stage performance.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, done once per month.

Principal Repaid

The amount of the original loan paid back, excluding interest or additional fees.