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13. The figure below represents the marginal cost of a small firm in a perfectly competitive market. The firm's fixed cost is $100. If the current market price is p = $20, and the firm is producing the quantity that maximizes profit, then the firm's total profit will be a. $100 b. $170 MC c. $200 d. $370 30 e. $400 20 10 10 20 30

13. The figure below represents the marginal cost of a small firm in a perfectly competitive market. The firm's fixed cost is $100. If the current market price is p = $20, and the firm is producing the quantity that maximizes profit, then the firm's total profit will be a. $100 b. $170 MC c. $200 d. $370 30 e. $400 20 10 10 20 30

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I NEED 8 PLEASE AND 13 THEY ARE VERY IMPORTANT AND I AM STUCK PLEASE 

9. There are currently 60 perfectly competitive firms producing output q. The cost function of each firm is C = 10 + 3q2. The demand in this market is Qº = 1200 – 40p. Use this information to answer questions #9- 10. What is the short-run market equilibrium price in this market? a. $0.55 b. $3 c. $4 d. $12 e. $24 10. Based on the information from the previous questions, is this market currently in a long-run equilibrium? a. Yes, there will be no entry or exit in the long-run. b. Yes, firms will enter the market in the long-run. c. Yes, firms will exit the market in the long-run. d. No, firms will exit the market in the long-run. e. No, firms will enter the market in the long-run. 11. A firm in a perfectly competitive market uses capital and labor to produce output q. The firm's production function is F(L, K) = L0.5 K0.5. The prices of labor and capital are w = 4 and r = 1. The firm chooses the inputs in order to minimize its costs. Use this information to answer questions #11-12. What is the optimal mix of labor and capital? a. L=4K b. K= 4L с. K = 2L d. L= 2K e. L= K 12. Using the information about the firm in the previous question, how much labor and capital will it hire if the production target is q 4? a. L= 2 and K = 8 b. L = 4 and K = 4 c. L = 8 and K = 2 d. L = 1 and K = 16 е. L = 2 and K = 2 13. The figure below represents the marginal cost of a small firm in a perfectly competitive market. The firm's fixed cost is $100. If the current market price is p maximizes profit, then the firm's total profit will be $20, and the firm is producing the quantity that a. $100 b. $170 c. $200 d. $370 MC 30 e. $400 20 10 10 20 30
Transcribed Image Text:9. There are currently 60 perfectly competitive firms producing output q. The cost function of each firm is C = 10 + 3q2. The demand in this market is Qº = 1200 – 40p. Use this information to answer questions #9- 10. What is the short-run market equilibrium price in this market? a. $0.55 b. $3 c. $4 d. $12 e. $24 10. Based on the information from the previous questions, is this market currently in a long-run equilibrium? a. Yes, there will be no entry or exit in the long-run. b. Yes, firms will enter the market in the long-run. c. Yes, firms will exit the market in the long-run. d. No, firms will exit the market in the long-run. e. No, firms will enter the market in the long-run. 11. A firm in a perfectly competitive market uses capital and labor to produce output q. The firm's production function is F(L, K) = L0.5 K0.5. The prices of labor and capital are w = 4 and r = 1. The firm chooses the inputs in order to minimize its costs. Use this information to answer questions #11-12. What is the optimal mix of labor and capital? a. L=4K b. K= 4L с. K = 2L d. L= 2K e. L= K 12. Using the information about the firm in the previous question, how much labor and capital will it hire if the production target is q 4? a. L= 2 and K = 8 b. L = 4 and K = 4 c. L = 8 and K = 2 d. L = 1 and K = 16 е. L = 2 and K = 2 13. The figure below represents the marginal cost of a small firm in a perfectly competitive market. The firm's fixed cost is $100. If the current market price is p maximizes profit, then the firm's total profit will be $20, and the firm is producing the quantity that a. $100 b. $170 c. $200 d. $370 MC 30 e. $400 20 10 10 20 30
82 66 50 38 32 24 16 D 8. 16 22 25 34 41 Q Use the graph above to answer questions #5-7 about the market for jeans. 5. If the market for jeans is in equilibrium, consumer surplus is a. $968 b. $836 c. $726 d. $484 e. $242 6. If the government institutes a price floor at P=$50 there will be a. Excess Demand = 22 units b. Excess Demand = 16 units c. Excess Supply = 34 units d. Excess Supply = 18 units e. Excess Supply = 6 units 7. A price floor at P=$50 will result in a loss of economics surplus, DWL, of at least a. $400 b. $256 c. $208 d. $64 e. $54 8. Adel, Beyoncé, and Christina Aguilera derive utility from consuming goods x and y according to the following utility functions: Adel: u^(x, y) = 4x + y Beyoncé: u* (x, y) = 5x + y Christina: u (x, y) = 3x + y They purchase x and y in the same market, so they all pay the same prices, p, and py. They all have the same income, I, and make purchases that maximize their utility. Adel is currently purchasing 30 units of x and 5 units of y. We can therefore conclude that a. Beyoncé is using all her money to buy x, while Christina is using all her money to buy y. b. Beyoncé is using all her money to buy y, while Christina is using all her money to buy x. c. Both Beyoncé and Christina are using all their money to buy x. d. Both Beyoncé and Christina are using all their money to buy y. e. Both Beyoncé and Christina are purchasing the same basket as Adel. 3
Transcribed Image Text:82 66 50 38 32 24 16 D 8. 16 22 25 34 41 Q Use the graph above to answer questions #5-7 about the market for jeans. 5. If the market for jeans is in equilibrium, consumer surplus is a. $968 b. $836 c. $726 d. $484 e. $242 6. If the government institutes a price floor at P=$50 there will be a. Excess Demand = 22 units b. Excess Demand = 16 units c. Excess Supply = 34 units d. Excess Supply = 18 units e. Excess Supply = 6 units 7. A price floor at P=$50 will result in a loss of economics surplus, DWL, of at least a. $400 b. $256 c. $208 d. $64 e. $54 8. Adel, Beyoncé, and Christina Aguilera derive utility from consuming goods x and y according to the following utility functions: Adel: u^(x, y) = 4x + y Beyoncé: u* (x, y) = 5x + y Christina: u (x, y) = 3x + y They purchase x and y in the same market, so they all pay the same prices, p, and py. They all have the same income, I, and make purchases that maximize their utility. Adel is currently purchasing 30 units of x and 5 units of y. We can therefore conclude that a. Beyoncé is using all her money to buy x, while Christina is using all her money to buy y. b. Beyoncé is using all her money to buy y, while Christina is using all her money to buy x. c. Both Beyoncé and Christina are using all their money to buy x. d. Both Beyoncé and Christina are using all their money to buy y. e. Both Beyoncé and Christina are purchasing the same basket as Adel. 3
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