Carlos TorresPart 1: I chose to make up my own hypothetical company, which will be named MegaPatties. 

Part 2:  MegaPatties is a brand new burger joint located in Washington DC. MegaPatties focuses on distributing the best tasting burgers across the northwestern part of Washington DC, focused on the overall enjoyment of the consumer. 

Fixed Costs: Rent: $3,500 per monthWages: $500Supplies for Food: $1000Other expenses: $250

Variables Cost:  Producing one extra burger costs MegaPatties $3.

Price at which the company sells one burger: $5 

Find the Cost Function: C(q) = 5250 + 3(q) 

Revenue Function: R(q) = 5(q)

Profit Function: 5(q) - [5250 + 3(q)]

Determine the break-even value:  5q = 5250 + 3q (Total Revenue = Total Revenue)                                                      2q = 5250                                                        q = 2625 MegaPatties reaches break-even value when it produces 2625 hamburgers.

·       Graph the cost function and the revenue function on the same grid and mark the break-even point and its value on the graph

·       Interpret the meaning of the break-even point on the graph and interpret the graphs themselves in terms of slope (i.e. marginal cost and marginal revenue): 

      The meaning of the breakeven point in the graph is that when MegaPatties produces 2625 burgers, the company begins turning some profits. 

    

    ·       Graph the profit function on its own grid and mark and interpret the break-even point and its value on the graph

     

The graph shows that once MegaPatties reaches the breakeven point at 2625 patties, it begins making profits. Prior to this the company was not producing profits. 

Part 3:

 Determine how many units of the product are produced on a daily basis

MegaPatties produces a total of 500 burgers daily. 

·       Plot the point of the number of units produced daily on the cost and revenue graphs

     

 Point b represents the amount of burgers produced relative to Cost, while point a represents the amount of burgers relative to Revenue. 

Marginal cost for producing nth unit : 

Marginal cost = C'(q) 

C(q) = 5250 + 3q

C'(q) = 3

Thus, the production of a burger costs a marginal value of 3 dollars. 

5250 + 3(500)/500
= 13.5 
The average cost of producing 500 hamburgers is 13.5 dollars. 

The marginal revenue is greater than the marginal cost by 2 dollars

It is before the breakeven point, but with the continuing of sales the company will be able to reach the break-even point. 

The company will continue to make profit if the quantity is increased by one unit, after it reaches the break-even point 

Decreasing average costs would be best for the company. 

Part Four: 
After the company reaches the break-even point, it will begin to make profits.
I think the company will be a very successful company after establishing its brand.