Home » Suppose that costs are given by Cy18.5y,for y0 and C(0) = 0and the demand curve is P(y)=9 – y. Find the following.a) the marginal and average cost…

# Suppose that costs are given by Cy18.5y,for y0 and C(0) = 0and the demand curve is P(y)=9 – y. Find the following.a) the marginal and average cost…

Suppose that costs are given by Cy18.5y,for y0 and C(0) = 0and the demand curve is P(y)=9 – y. Find the following.a) the marginal and average cost functions.b) the monopoly price, quantity and profit.c) the first-best price regulation (if a subsidy is required, compute it).d) Show that this is one of those cases where it is possible to have a product which cannot be profitably sustained in the market, but whose production is

nevertheless socially desirable. Explain

Suppose that costs are given by C(y) =18.5y, for y0 and C (0) = 0and the demand curve is P(y)=9 – y. Find the following.a) The marginal and average cost functions.Marginal cost= ∂TC/∂y…

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