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Production function, MC, AVC, TC, lagrangian multipliers

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Consider the original following production function:

f(x) = x ^ 1/3

but now there is a fixed cost of F per year that the firm has already paid for this year.

a) assuming W = 1 and F = 2, draw the marginal cost function (MC), average variable cost (AVC) and the total cost function (TC). Be sure to find Y such that MC = AVC and Y such that MC = AC

b) What is the short run function? (This year in this case)

c) What is the long run supply function? (Next year in this case)


Solution Summary

The supply curve is assessed.