7. Recall the problem on the lecture notes on the short run. All of these notes are in the prerecorded lecture on short run production and costs - Cobb Douglas. Use the long run production function Q = K /21 /2 = VK VL and assume that in the short run K = 4, r = $25 = price per unit of K (rent) and w = $20 = price per unit of L (wage). Short run production function: Q=V4VZ = 2VI APL = 2VL 7 2 MPL = T a. Using the equation, what 12 is the MPL when L = 4? 11 10 e. Draw the production function (Q) on the graph, label the axes. f. Draw a tangency at L = 4, what is the slope? O g. How does the slope of the tangency compare to L your answer to part a above? How should it compare? h. Draw the APL and MPL on the graph, label the axes. 12 11 1. Where is the MPL compared to the APL? Why? APL, MPL HNWAUMNOOUS + 00 m