Question

Question 2: Supply Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this p submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost functi Average fixed cost function. Once you obtain these, sketch them on the grid below. AC, AVC, AFC, MC

Answer 1

Poee Groen Total Cost function CCY) = 2y?+4200 fixed cost 200 ca Marginal cost MC=Hyt Average cost <A C= 2y +1+200ly Average valable cogt Ave -34 + Average function Cost AFC = 2004 3 MC HOU+1 -5 AC Avc 20)+1+20011-203 20)+1-3 202)+1+200129= 2(0)4-5 AFC 2001 - 200 - 1268) +1=9 200/2 = 100 لا 105 (3)+1 -13 م 2003- 67 X3+1+200/3 913)+27 7 (4) +1+200/u 204)+ 1 og 200/4250 که lucu)t1 = 17 =5a ما M(5)+1=21 205)+1+200)5 265)+1=11 200152 HO 51 266)+1+20016 216)+1=13 20016-33 =H6 6: 40)+1=25 8 (1)+1=15 200 11-29 u 1+1=29 2 0) +1+200)7

setz | 200 | 8 = as م 14 = 1 + (38 aols+ 1+ (38 3= أ+ (8) قہر - 16 = 1 + ( aca ) + + 2ools aq 37: 1 + (@ با 24 - 2009 ه aootb - 20 ا = 1 +(cle aco +1+(ع الم - مل = | (ie) بر ة aoa ]11 - 18 u( )+1 = 15 an+1+2cchi acu)+1 = 33 = قم ا اا - 7 : aoota) بر a ) - LG alt2 ) ) + Bolta a ( 12 ) + ) = 5 وہ ہے د (+(203 doo+++ (3) 53 = 1+ (13) با aool3-15 بما | 24 - 3 aco 111 = 1 ا+(در a0 a ( ) + ) + 2ool 54 - اد (ب) ت = as | - A3 aoo) 15 )3 بر 2015 ا3 کو (200+ | + (ی)2 6 = + (ی) پر ک ت HA aoo ) - 13 امری ) 4 ( at ) + 1 + 2oe و ہنر C + ) = 65 پر | و 33

Cost 1 2 3 н5618 0 10 11 12 13 14 Б % ---MC ---- AC - AVC- * AFC оо1 P (9)

Page 3 b) F-61, out put Soppted ewals Асар u3+1 = 61 uy=60 19=15 Jessica Pooducer su oplos - total revenue - total valable cose Ps= Pxy - 2x y²/4 61*15 - 2x(15)2:15 = a15-465 sestica Podducer Surplus = 450 (c) Pebl MC curve above to unity of output represents long. sun Suppl Соде AC=MC 24+1+200/y =uyt! = cooly: 49-24 २००४ -१५ = 42-100 19=10

Page the Jessica porofit = to fal gevenue -tolal cost = 61X10 -2 x 100+10+200 = 610-410 Jessica Pootit = 200) d) yes, Jeffca stöchy supplies a positive amount. in short son and long don because the price charged lies above the minimum Cost curve too long sun and shoot son