In the Deep Creek Mining Company example described in this chapter Table, 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 ofproduction.

Transcribed Image Text:

TOTAL OUTPUT TABLE-DEEP CREEK MINING COMPANY CAPITAL INPUT K (BHP, BRAKE HORSEPOWER) 250 500 750 1,000 1,250 1,500 1,750 2,000 LABOR INPUT L (NUMBER OF WORKERS) 10 16 16 16 13 16 3 4 16 29 4 6 29 44 5 16 43 55 6 29 55 60 744 5862 850 60 62 9 55 59 61 10 52 56 59 24 62 62 62 62 64 64 64 64 64 67 LABOR INPUT L (NO. OF WORKERS) TOTAL PRODUCT TPL (: Q) MARGINAL PRODUCT MP AVERAGE PRODUCT APL 10