a) Assume that a firm's cost function is, C(Q) = 200 + 10Q + Q 2 .

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Question:

a) Assume that a firm's cost function is, C(Q) = 200 + 10Q + Q² . Calculate fixed cost of production, total cost of production 2 units of product and the marginal cost of producing 5 units of product.

b) A firm's marginal cost function is equal to MC = 5q, where q is the quantity of product produced. Calculate the variable cost when the firm produces 20 units of product.