a) An old-style marketplace called Roots and Fruits makes bread, and has the production function f(x) = x, where x is flour. The cost of each pound of flour is w. Is average cost increasing, decreasing, or constant as y increases?

b) A firm is producing output using one variable factor of production. The firm's production function is y = 154x 5x² . The price of the output is $2 and the price of input is $8 per unit. How many units of the input should the firm use?