46) Assume a perfectly competitive firm has the following revenue and cost functions (must show work for credit)

TC = 11,250 + 10Q + 0.02Q2 ; TVC = 10Q + 0.02Q2 MC = 10 + 0.04Q

TR = 40Q

A. What is the level of output and price that maximizes Profits, if any? Compute Profit, if any.

B. Should this firm continue producing if price falls to $35? explain.

47) show your work:

Suppose that Layla sells "beef" empanadas that she produces in a perfectly competitive market.

Her Total Cost (TC) and total variable cost (TVC) of producing an empanada is:

=40+0.120.2 ; =0.120.2 And her MC is

MC = 0.2Q - 0.2

A. If the market price of an empanada is $4.6, what quantity, if any, should Layla produce to maximize her profit? If she remains open, what is her economic profit or loss?

B. Suppose the market price of an empanada falls to $3. What quantity should Layla produce, if any, to maximize her profit? If she remains open, what is her economic profit or loss?