Explore BrainMass
Share

Production function

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

© BrainMass Inc. brainmass.com July 23, 2018, 2:16 am ad1c9bdddf

Attachments

Solution Preview

Hello

Please see the attached word and excel file. Word file ...

Solution Summary

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

$2.19