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The economist for the Grand Corporation has estimated the company's cost function, using time series data, to be
TC = 50 + 16Q - 2Q2 + 0.2Q3
where TC = Total cost
Q = Quantity produced per period
i. Calculate the average total cost, average variable cost, and marginal cost for these quantities.
ii. Discuss your results in terms of decreasing, constant, and increasing marginal costs. Does Grand's cost function illustrate all these?
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