Question: Problem 7 (20 points) . .. Given the total cost function of a firm operating in a perfectly competitive market* C(x,y)= 4x2 -2xy + 1y

Problem 7 (20 points) . .. Given the total cost function of a firm operating in a perfectly competitive market* C(x,y)= 4x2 -2xy + 1y + 20, find expressions for: a) The marginal cost of producing product x, b) The marginal cost of producing product y. Given prices in the markets of good x, Pr = 1, and of good y, Py = 2, solve: c) The profit maximizing quantity of good x, d) The profit maximizing quantity of good y. *Perfect competition implies constant marginal revenue equal to the market price/unit

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