Severin, the herbalist, is famous for his hepatica. His total cost function is c(y) = y^2+10 for y>0 and c(0)=0. (That is, his cost of producing zero units of output is zero.)
a) What is his marginal cost function? What is his average cost function?
b) At what quantity is his marginal cost equal to his average cost? At what quantity is his average cost minimized?
c) In a competitive market, what is the lowest price at which he will supply a positive quantity in long-run equilibrium? How much would he supply at that price?