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Derive the supply function for periods 1 and 2 Suppose that there is no learning by doing, and that the unit cost functions are as

Derive the supply function for periods 1 and 2

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Suppose that there is no learning by doing, and that the unit cost functions are as follows: 61 = and C2 = q2 . ls the cost of caring for patients 2 2 increasing or decreasing in the number of patients seen? Derive the supply function in periods 1 and 2 for the hospital. I: [Hint: Substitute the unit cost functions into the profit functions and take the derivative of It with respect to Q1 and qz]. I:I Answer: q1 2 p1 and q2 2 p2

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