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Q2 (a) (10 points) Damian is a sculpture that combines bronze and gold to produce sculptures. To produce 3 sculptures he needs to l combine
Q2 (a) (10 points) Damian is a sculpture that combines bronze and gold to produce sculptures. To produce 3 sculptures he needs to l combine 3 of a unit of gold with 2 units of bronze. What is his production function for sculptures? What is Damian's cost function for producing y sculptures if the cost of gold is w] and the cost of bronze L02? 02 (b) (10 points) Is the average cost function of this firm increasing, decreasing, or staying constant as the amount of production changes? Explain using full sentences what this means. Draw a diagram of the average cost function with average cost on the "Y" axis, and the amount of production on the "X" axis
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