Long-Run Total Cost Assignment | Homework For You
December 18th, 2019
Suppose that the long-run total cost of producing y hundred bushels of corn on an acre of land is c(y) =(1 +y2)for y>0 and c(0) =0.
a. Write down a formula for the long-run average cost function per hundred bushels of corn from an acre of land.
b. At what level of output is long-run average cost minimized on an acre of land? Hint: The marginal cost is 2y
c. What is the lowest price per hundred bushels at which an acre of land will be used to produce corn? Get Economics homework help today