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Production function

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Suppose a firm faces a cost function of the form :

C (y) = 8 + 4y + y ^ 2

a) What is the firm's fixed cost, FC?
b) What is the firm's variable cost, VC?
c) What is the formula for the average cost, AC?
d) What is the formula for the average variable cost, AVC?
e) What is the formula for the marginal cost, MC?
f) On a diagram, draw the AC, AVC, MC

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Solution Summary

Solution contains calculations of Production function, FC, VC, AC, AVC, MC and graph .