Problem: 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.
1) 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
2) What is the short run function? (This year in this case)
3) What is the long run supply function? (Next year in this case)