1. A competitive firm has a cost function given by C(y) = 9+ y + y2. (20 pts) a) Derive the SAC, SMC and AVC functions and show them on a graph. At what output is SAC minimized? Determine the short run supply function for this firm and show it on your graph. Why is SMC (y) = AVC (y) aty = 0? b) Assume that the market price is p = 11. Compute the producer surplus (PS) at p = 11 using the following two methods: (i) [p - AVC (y)] y and (ii) the area to the left of the supply curve under the price. Show these measures on your graph