00:01
Okay, so we're going to be looking here at the long run marginal cost given a long run cost function.
00:11
The cost function given is cost is equal to y squared plus one.
00:22
Okay, so the basic premise on which this question is based is the simple fact that when we, we have our costs in relation to the price, but before we get there, we want to look at the relationship between the long -run average variable costs and the long -run marginal cost, and the long -run marginal cost, lmc.
00:58
Okay, so the relationship reflects even that of the short run, the simple fact.
01:03
That the supply curve will be this whole section that is above the average, the long run average variable cost.
01:17
Okay, so that whole section would be the supply curve.
01:21
So in a competitive market, you are likely, obviously, to find that your marginal cost is equal to the derivative of the function, so would be to why and now in a competitive market you notice that the price is equal to marginal cost at every level that that would hold true okay so the first step is to realize that the price is equal to marginal cost gives us the supply curve okay it gives us a supply curve so to substitute then and instead of the marginal cost is equal to 2y, you substitute the marginal cost with the price...