You are manager of a firm with the following short-run production function: Q = L^1/3. Fixed costs are R160 000, the wage rate is R10.

(1) Graphically illustrate and explain the marginal cost, average variable cost and average total cost curves of your firm, given the information above.

(2) Based on the answer in (1), graphically illustrate and explain the supply curve of the firm.

(3) Suppose the firm faces the following demand curve: P = 14000 - 100Q, graphically illustrate and explain the market equilibrium faced by the firm.

(4) At what point would you set the production target and price for the firm? Graphically illustrate how far, in terms of price and output, would the firm deviate from economic efficiency.

(5) Suppose you intend to increase your revenue. Would you cut prices, given the information above?