Question: The total cost function for Quick Alert Alarm Systems Inc. is given by the equations: Given the following total cost function: TC = 2000 +

The total cost function for Quick Alert Alarm Systems Inc. is given by the equations:

Given the following total cost function:

TC = 2000 + 400Q - 18Q2 + 0.5Q3

(a) What is the Average Variable Cost?

(b) What is the value of Average Fixed Cost at an output of 20 units?

(c) At what output level is Marginal Cost at its minimum?

(d) At what output is Average Variable Cost at its minimum?

(e) If the price of the firm's output is RM230 per unit, should the firm continue

or shut down its operations? Why?

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