Severin, the herbalist, is famous for his hepatica. His total cost function is c(y) = y2 + 10 for y > 0 and c(0) = 0. (That is, his cost of producing zero units of output is zero.)
(a) What is his marginal cost function? _____. What is his average cost function? ______.
(b) At what quantity is his marginal cost equal to his average cost? _____. At what quantity is his average cost minimized? _______.
(c) In a competitive market, what is the lowest price at which he will supply a positive quantity in long-run equilibrium? ______. How much would he supply at that price? _____.