A competitive firm has a cost function given by C ( y ) = 10 y 2y 2 +1/3y 3 a. Derive the SAC,SMC and AV C functions and show them on a graph. What

A competitive firm has a cost function given by C(y) = 10y − 2y2+1/3y3

a.    Derive the SAC,SMC and AV C functions and show them on a graph. What is the short run supply function? Show this function on your graph.

b.   Assume that the market price is p = 15. Show on a graph the producer's surplus using the three alternative methods covered in class. Use one of these methods to calculate the producer's surplus.