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9 Consider the short-run cost function and associated marginal costs: C(y)=2wy2+10y21+10MC(y)=4wy+y215 a) Calculate the average cost (AC), average variable cost (AVC), and average fixed cost
9 Consider the short-run cost function and associated marginal costs: C(y)=2wy2+10y21+10MC(y)=4wy+y215 a) Calculate the average cost (AC), average variable cost (AVC), and average fixed cost (AFC) curves. b) Assume w=1 for the rest of this question. Solve for the firm's shutdown price. c) What is the inverse supply function? d) If price =10 does the firm operate? If so, what are its profits? e) If price =14 does the firm operate? If so, what are its profits? f) If price =18 does the firm operate? If so, what are its profits? g) Plot and label all four cost curves to scale. You may use a screenshot (but make sure to label it) from a graphing calculator if its easier. 9 Consider the short-run cost function and associated marginal costs: C(y)=2wy2+10y21+10MC(y)=4wy+y215 a) Calculate the average cost (AC), average variable cost (AVC), and average fixed cost (AFC) curves. b) Assume w=1 for the rest of this question. Solve for the firm's shutdown price. c) What is the inverse supply function? d) If price =10 does the firm operate? If so, what are its profits? e) If price =14 does the firm operate? If so, what are its profits? f) If price =18 does the firm operate? If so, what are its profits? g) Plot and label all four cost curves to scale. You may use a screenshot (but make sure to label it) from a graphing calculator if its easier
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