Final answer:
To calculate the cost of shutting down operations for the next four months, substitute the value of Q as zero in the cost function equation c = 500,000 + 5Q. The cost will be $500,000 if the company decides to shut down operations for the next four months.
Step-by-step explanation:
To calculate the cost of shutting down operations for the next four months, we need to substitute the value of Q (quantity) as zero in the cost function equation c = 500,000 + 5Q. This will give us the fixed cost component only.
So, by substituting Q as zero, the cost function becomes:
c = 500,000 + 5(0)
c = 500,000
Therefore, if the company decides to shut down operations for the next four months, the cost will be $500,000.