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The total cost equation in the production of bacon at some hypothetical factory is
C = 1000 + 100Q - 15Q2 + Q3
Where C = Cost measured in shillings, while Q = quantity measured in kilogrammes.
a) Compute the total and average costs at output level of 10 and 11 kilogrammes.
b) What is the Marginal cost of the 12th Kilogramme?
c) Explain the shape and relationship between AC,AVC,MC and AFC curves using relevant diagrams.
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