= 2. (10 points) Consider a competitive firm with cost function given by c(y) = 500+2y+0.05y....

 

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= 2. (10 points) Consider a competitive firm with cost function given by c(y) = 500+2y+0.05y. The price of the firm's output is p > 0, and the firm's profit function is (y) = py - c(y). == (a) (5 points) Find the formula for the profit-maximizing output level given p, namely y* y(p). (Remember to check the SOC.) = 1 (b) (5 points) Find the formula for the maximum-profit function, * (p), and verify that * (p) = y(p). 3. (10 points) Repeat problem (2) but using the following cost function: c(y) 500+ 2y + 310y. = = 2. (10 points) Consider a competitive firm with cost function given by c(y) = 500+2y+0.05y. The price of the firm's output is p > 0, and the firm's profit function is (y) = py - c(y). == (a) (5 points) Find the formula for the profit-maximizing output level given p, namely y* y(p). (Remember to check the SOC.) = 1 (b) (5 points) Find the formula for the maximum-profit function, * (p), and verify that * (p) = y(p). 3. (10 points) Repeat problem (2) but using the following cost function: c(y) 500+ 2y + 310y. =