Home » Suppose that Laylita sells empanadas at a perfectly competitive farmers’ market and that her total cost of producing empanadas is T C(q) = 40 + 0.

# Suppose that Laylita sells empanadas at a perfectly competitive farmers’ market and that her total cost of producing empanadas is T C(q) = 40 + 0.

Suppose that Laylita sells empanadas at a perfectly competitive farmers’ market and that her total cost of producing empanadas is T C(q) = 40 + 0.1q 2 − 1 5 q where q is the total number of empanadas that she produces. Given this total cost function, her marginal costs of production are .2q − 1 5 .

(a) What is the average total cost of producing empanadas as a function of the quantity of empanadas produced?

(b) At what quantity, q ∗ , is the average total cost of producing an empanada minimized? What is the value of the average total cost at q ∗ ? (1/2 point)

(c) The price of an empanada is \$4.20. What quantity of empanadas should Laylita produce to maximize her profit? If she remains open, what is her economic profit or loss? (1/2 point)

(d) Suppose that the price of an empanada falls to \$3.00. What quantity of empanadas should Laylita produce to maximize her profit at this new price? If she remains open, what is her new profit or loss? (1/2 point)

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.