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Consider again the production function Q = 4KL, and w = 25, r = 25. Suppose that we are in the short run, with K
Consider again the production function Q = 4KL, and w = 25, r = 25. Suppose that we are in the short run, with K fixed at 1. (1) Find the expression for the short run total cost curve, decomposing this into total fixed costs and total variable costs. (2) Solve for the short run average cost curve and plot it on a graph, along with the long run average cost curve from question 2 (Maybe useful to label the costs for Q=1, Q=4, Q=16). For what value of Q do the two average cost curves coincide? Explain
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