2. A firm has a cost function that satisfies the following: (i) PS (y) - II (y) = 2 for all y, (ii) SMC(0) = AVC(0) = 1 and (iii) DA aAVC(y) = (20 pts) a) Derive the firm's cost function C (y), marginal cost function SMC (y) , average cost SAC(y), and average variable cost function AVC (y). Show AVC, SMC and SAC on a graph. b) Suppose the market price is 11. How many units would the firm produce? Determine the associated profit and producer surplus for the firm