Question: According to a statistical study, the following relationship exists between an electric light and power plant’s fuel costs (C) and its eight-hour output as a percent of capacity (Q):
C = 16.68 + 0.125Q + 0.00439Q2
a) When Q increases from 50 to 51, what is the increase in the cost of fuel for this electric plant?
b) What is the marginal fuel cost curve for this plant, MC = ?
c) What is the marginal cost of at Q=50?
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