What is the increase in the cost of fuel


Problem: According to a statistical study, the following relationship exists between an electric light and the power plant's fuel costs (C) and its eight-hour output as a percent of capacity (Q):
C = 16.68 + 0.125Q + 0.00439Q2

1) When Q increases from 50 to 51, what is the increase in the cost of fuel for this electric plant?

2) Of what use might the result in part a be to the plant's manager?

3) Derive the marginal (fuel) cost curve for this plant, and indicate how it might be used by the plant's manager.

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Microeconomics: What is the increase in the cost of fuel
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