A company's total cost to produce a quantity (Q) of a product is given by the function C(Q) = $200,000 + $75Q. The government unexpectedly imposes a new, one-time environmental compliance fee of $50,000 on the company, which must be paid regardless of its output level. How will this new fee affect the company's Marginal Cost (MC) and its Average Cost (AC)?
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A company's total cost to produce a quantity (Q) of a product is given by the function C(Q) = $200,000 + $75Q. The government unexpectedly imposes a new, one-time environmental compliance fee of $50,000 on the company, which must be paid regardless of its output level. How will this new fee affect the company's Marginal Cost (MC) and its Average Cost (AC)?