A firm's total cost (in million naira) for producing $Q$ thousand units is given by $TC = 0.02Q^{3} - 0.3Q^{2} + 15Q + 200$. Find the output level (in thousand units) at which average total cost is minimised and state that minimum average total cost.

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Output = 20 thousand units; minimum ATC = 27 million naira per thousand units

Waec Model Questions Vol1 2019 Economics Question 23

A firm's total cost (in million naira) for producing \(Q\) thousand units is given by \(TC = 0.02Q^{3} - 0.3Q^{2} + 15Q + 200\). Find the output level (in thousand units) at which average total cost is minimised and state that minimum average total cost.

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