A competitive firm has the following short-run cost function: c(y) = y3 - 8y2 + 30y + 5
(a) What is the firm’s marginal cost function?
(b) What is the firm’s average cost function?
(c) Draw and label a graph of the marginal cost function and the average variable cost function in a diagram.
Fill in the blanks (show your work, or explain):
(d) Average variable cost is falling as output rises if output is less than ---- and rising as output rises if output is greater than ----.
(e) Marginal cost equals average variable cost when output is ----.