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
Please see the attached word and excel file. Word file ...
Solution contains calculations of Production function, FC, VC, AC, AVC, MC and graph .
Production Function that Can Be Easily Transformed to Linear
A major advantage of the __________________ production function is that it can be easily transformed into a linear function, and thus can be analyzed with the linear regression method.
none of the above.