In the Deep Creek Mining Company example described in this chapter (Table 7.1), suppose again that labor is the variable input and capital is the fixed input. Specifically, assume that the firm owns a piece of equipment having a 500-bhp rating. a. Complete the following table:
b. Plot the
(i) total product,
(ii) marginal product, and
(iii) average product functions.
c. Determine the boundaries of the three stages of production.