Let q=K^(.75)*L^(.25) denote the production function, and w and r denote the prices of K (captial) and L (labor). Suppose K is fixed at 10 and L is variable.
2.1 Compute and illustrate MPL and APL
2.2 Derive FC, VC and TC
2.3 Derive AVC, AFC, ATC, and MC
2.4 Why is MC>AVC?
2.5 Where does the MC intersect the AC and why?