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A firm has a total cost function:T C = 10 + 10Q - 4Q2 + Q3, (6)where Q is the number of units of output produced.
(a) Find the total variable cost T V C and total fixed cost T F C
(b) Derive the average variable cost AV C
(c) Derive the marginal cost MC
(d) What is the output level where average variable cost is minimum?
(e) What is the output level where average variable cost equals marginal cost?
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