question 2

Please show your working. 2. Linear Approximation Suppose a rm has the total cost function C(Q) : eQ_1 + 2. (a) (1 point) What are the costs of producing 1 unit, i.e., 0(1)? (b) (1 point) Find MC(1). (c) (4 points) Assume the rm produces 2 units. Use M 0(1) and 0(1) and the rstorder approximation method to approximate the cost of the 2nd unit. The cost of the second unit is the total costs of producing 2 units minus the total costs of producing 1 unit, that is, 0(2) 0(1). How large is the difference between the approximated cost of the 2nd unit and its actual cost