Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. The production function for a firm is q=0.6L3+18L2K+10L where q is the amount of output, L is the number of labor hours per week, and K the amount of capital. The wage is $100 and the rental rate is $800 per time period. a) Calculate the total short-run output, q(L), for L=0,1,2,,20, given that capital is fixed in the short run at K =1. Also, calculate the average product of labor, APL, and the marginal product of labor, MPL. (You can estimate the MPL for L=2 as q(2)q(1), and so on for other levels of L.) b) For each quantity of labor in (a), calculate the variable cost, VC; the total cost, C; the average variable cost, AVC; the average cost, AC; and the marginal cost, MC. Draw the AVC,AC, and MC curves in a diagram. c) For each quantity of labor in (a), calculate w/APL and w/MPL. Explain the relationships between AVC and w/AP and between MC and w/MPL. Capital (K) Use Excel to draw the AVC,AC, and MC curves in a diagram. Determine the relationships between AVC and w/APL and between MC and w/MPL. With a constant wage, when the average product rises, the average varable cost With a constant wage, when the marginal product rises, the marginal cost Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. The production function for a firm is q=0.6L3+18L2K+10L where q is the amount of output, L is the number of labor hours per week, and K the amount of capital. The wage is $100 and the rental rate is $800 per time period. a) Calculate the total short-run output, q(L), for L=0,1,2,,20, given that capital is fixed in the short run at K =1. Also, calculate the average product of labor, APL, and the marginal product of labor, MPL. (You can estimate the MPL for L=2 as q(2)q(1), and so on for other levels of L.) b) For each quantity of labor in (a), calculate the variable cost, VC; the total cost, C; the average variable cost, AVC; the average cost, AC; and the marginal cost, MC. Draw the AVC,AC, and MC curves in a diagram. c) For each quantity of labor in (a), calculate w/APL and w/MPL. Explain the relationships between AVC and w/AP and between MC and w/MPL. Capital (K) Use Excel to draw the AVC,AC, and MC curves in a diagram. Determine the relationships between AVC and w/APL and between MC and w/MPL. With a constant wage, when the average product rises, the average varable cost With a constant wage, when the marginal product rises, the marginal cost