You will create a cost function for this exercise using your birthday. Make note of your birthday using the number of the month (1-12) and the number for the day of the month (1-31) below. Month (m): Day (d): Use the two numbers above, m and d, to complete the cost function for a perfectly competitive firm: Cost (q) = mq+d= (30) For a cost function like yours, Marginal Cost (MC)=2 mq. Specifically, what are the following for the cost function you wrote out above? Fixed Cost = Variable Cost= Marginal Cost = 2mq= Average Total Cost = Cost (q)/q= Average Fixed Cost = FC/q= Average Variable Cost =VC/q= (15) Fill in the table with your values from your total, marginal and average cost functions above. q Total Cost AFC ATC AVC 0 0 0 1 2 3 4 5 MC 6 (25) Create a graph showing the minimum of your ATC function. For a cost function like yours, minimum ATC is where q = (d/m). You can use this to check your work. (10) Add AVC and MC to your graph. (10) Here MC is always increasing. As q increases, what happens to ATC when it is less than MC and what happens to ATC with is more than MC? (to the left and to the right of where MC-ATC?) (5) At what level of production is AVC at its minimum? (the table you made is enough information for you to find this value.) For any price, will your firm always be able to cover its variable cost? (5) On your graph, indicate the supply curve of your firm in the short run. In words, explain the supply curve in the short run.