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A competitive firm has an average variable cost function given by AVC [ y ] = 1 0 + 4 y . Moreover, when the

A competitive firm has an average variable cost function given by AVC [y]
=10+4y.
Moreover, when the market price is $42, the firm's maximum profit is $14.
Given this information:
(a) Derive the firm's cost function c(y), marginal cost, MC(y), and average total
cost, ATC(y). Show MC(y), AV C(y), and ATC (y) on a graph.
(b) Let the market price be $82. How much will the firm produce? Determine the
associated profit and producer surplus. Show your results in the graph you
constructed for part (a).
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