A Competitive Firm Has the Short-Run Cost Function

question 32

Essay

A competitive firm has the short-run cost function
c(y)= y3 -2y2 + 5y + 6.Write down equations for:
a.The firm's average variable cost function
b.The firm's marginal cost function
c.At what level of output is average variable cost minimized?
d.Graph the short-run supply function for this firm, being careful to label the key points on the graph with the numbers specifying the exact prices and quantities at these points.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability in a dataset relative to its mean, indicating how spread out the numbers are.

Mean

The arithmetic average of a set of values, calculated by dividing the sum of these values by the number of values.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much individual data points differ from the mean.