Herongate Horses Produces Saddles (Y)using Two Inputs, Leather (Z₁)and Labour

Essay

Herongate Horses produces saddles (y)using two inputs, leather (z₁)and labour (z₂). Herongate Horses' production function is given by: F(z₁,z₂)= (1/4)z₁z₂ . Suppose that z₂ is fixed at 2.
i)Find Herongate Horses' total product function, TP(z₁)when w₁ = 5 and w₂ = 20.
ii)Find Herongate Horses' variable cost function, VC(y). Find and graph the average variable cost function,
AVC(y).