LL (15pts) Follow the steps below to nd the short l'lJJ] cost curves associated with our Cobb-Douglas production function when K is xed at BUD-D units. Assume I = .5 and w = 45. a. {1.5pts] Calculate your SR production function {round any numbers to 4 decimal places]- b. {1.5pts] Calculate your PC. c. {2pm} Derive the equation for your VC {as a function of q) d. {1th Derive the equation for your TC [as a function of q) e. Graph the total cost curves: In your same Excel le, open a new worksheet [sheet 2] for cost information andrename it "cost" - do this by right clicking onthe tab. Note the difference between your production worksheet, in which the rst column stored possible values of L, and this new cost worksheet in which the rst column will store possible values of q. The variable represented in the rst column will be graphed on the horizontal axis of the scatterplot. (F or the isoquant diagram, L is shown on the horizontal axis.) The new cost worksheet will be used to graph cost mctions, with output (q) on the horizontal axis, and costs on the vertical axis. Use column A to store possible values of q from 0 through 211}. (Label this column q) Use column B to store Total Fixed Cost (EC). Use calculations from part b above. Use column C to store Total Variable Cost WC). Use equation from part c above. Use column D to store Total Cost (TC). Use equation from part d above. (Note: you could also simply add columns B and C] (4pts) Use a smooth scatterplot to graph TC, FC and VC. Title the graph "Total Cost Curves" and label the axes. Format the graph so the max on the horizontal axis is 2G and there are major grid lines both ways. Drag the bottom down a bit to make the graph easier to see. Cut and paste your graph here: f. Graph these average and marginal cost curves: Copy and paste column it into column E (you will now graph average and marginal curves. Generate AFC in column F by dividing FCt'q Generate AVC in column G by dividing 1.7qu Generate ATC in column H by dividing TCt'q Generate MC in column 1. MC is the slope of the TC or VC curves. In this case, it would require calculus. Thus, MC = 25