a firm has cost functioncy y2 1 if y gt 00
A firm has cost function:
C(y) = { y^2 + 1 if y > 0
{0 if y = 0
Let p be the price of output.
1) If p = 2, how much will the firm produce? If p = 1, how much will the firm produce?
2) What is the (optimal) profit function of the firm?
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