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A Competitive Firm Has the Short-Run Cost Function

Question 32

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A competitive firm has the short-run cost function
c(y)= y3 -2y2 + 5y + 6.Write down equations for:
a.The firm's average variable cost function
b.The firm's marginal cost function
c.At what level of output is average variable cost minimized?
d.Graph the short-run supply function for this firm, being careful to label the key points on the graph with the numbers specifying the exact prices and quantities at these points.

Correct Answer:

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a.y2 - 2y + 5.
b.3y2 - 4y + 5.
c.y = 1.
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