Question: Assume the short run variable cost function for Japanese beer is VC=0.55 Superscript 0.8q If the fixed cost (F) is $1800 and the firm produces

Assume the short run variable cost function for Japanese beer is

VC=0.55 Superscript 0.8q

If the fixed cost (F) is $1800 and the firm produces 550 units, determine the total cost of production (C), the variable cost of production (VC), the marginal cost of production (MC), the average fixed cost of production (AFC), and the average variable cost of production (AVC). What happens to these costs if the firm increases its output to 600?

Part 2

Assuming the firm produces 550 units, the variable cost of production (VC) is

mc=

vc=

afc=

avc=

Now suppose the firm increases output to 600 units

vc=

mc=

afc=

avc=

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