Question: 1 . ( 2 0 ) Consider the cost function c ( y ) = y 2 + 1 . a ) ( 4 )
Consider the cost function cyy
a Derive the average cost function.
b Derive the marginal cost function.
c At what level of output is the average cost minimized?
d Derive the average variable cost function.
e At what level of output does average variable cost equal marginal cost?
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