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20. You are given the following short-run production function for the firm: Q-241-(0.01)(L2), where L= number of workers hired per day, Q-output per day. The firm is a perfect competitor in both the output & input (i.e. labour) markets. The price of output is $10.00 per unit and labour costs $20.00 per day, the number of workers hired per day by the firm will be: A) 100 G) 1000 B) 200 H) 1100 C) 400 1) 1300 E) 800 D) 600 J) None of the above F) 900

20. You are given the following short-run production function for the firm: Q-241-(0.01)(L2), where L= number of workers hired per day, Q-output per day. The firm is a perfect competitor in both the output & input (i.e. labour) markets. The price of output is $10.00 per unit and labour costs $20.00 per day, the number of workers hired per day by the firm will be: A) 100 G) 1000 B) 200 H) 1100 C) 400 1) 1300 E) 800 D) 600 J) None of the above F) 900

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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20. You are given the following short-run production function for the firm: Q=24L-(0.01)(L²), where L= number of workers hired per day, Q = output per day. The firm is a perfect competitor in both the output & input (i.e. labour) markets. The price of output is $10.00 per unit and labour costs $20.00 per day, the number of workers hired per day by the firm will be: A) 100 G) 1000 B) 200 H) 1100 21-24. The demand and supply of spam is given by: Demand: P=100-2Q C) 400 I) 1300 A) 1/3 G) 2/7 Supply: P = 40 + Q Where P is the price in dollars and Q is the quantity in units. Initially, the market is in equilibrium at Q-20, P=$60. Questions 21 through 24 refer to this market for spam. 21. In equilibrium the elasticity of supply and the elasticity of demand are: B) Es= 1.5, ED = 1.0 A) Es=1.0, ED = 1.0 D) Es= 3.0, ED = 1.0 G) Es=2.5, ED = 1.5 E) Es=1.0, ED = 1.5 H) Es= 3.0, ED = 1.5 J) None of the above B) $228 H) $154 D) 600 E) 800 J) None of the above 22. Suppose that a $12 per unit tax is placed on buyers. The share of the tax borne by sellers will be: B) 2/3 D) 1/4 E) 1/5 F) 1/6 H) 0 J) None of the above 23. The total tax revenue raised will be: A) $240 C) $216 G) $168 D) O C) ½ I) 1 B) $8 H) $216 24. The excess burden of the tax will be: A) $16 C) $32 I) O G) $144 C) Es=2.5, ED = 1.0 F) Es= 1.5, ED = 1.5 I) Must be equal in equilibrium F) 900 E) $192 D) $204 J) None of the above. E) $48 D) $24 J) None of the above F) $180 F) $128
Transcribed Image Text:20. You are given the following short-run production function for the firm: Q=24L-(0.01)(L²), where L= number of workers hired per day, Q = output per day. The firm is a perfect competitor in both the output & input (i.e. labour) markets. The price of output is $10.00 per unit and labour costs $20.00 per day, the number of workers hired per day by the firm will be: A) 100 G) 1000 B) 200 H) 1100 21-24. The demand and supply of spam is given by: Demand: P=100-2Q C) 400 I) 1300 A) 1/3 G) 2/7 Supply: P = 40 + Q Where P is the price in dollars and Q is the quantity in units. Initially, the market is in equilibrium at Q-20, P=$60. Questions 21 through 24 refer to this market for spam. 21. In equilibrium the elasticity of supply and the elasticity of demand are: B) Es= 1.5, ED = 1.0 A) Es=1.0, ED = 1.0 D) Es= 3.0, ED = 1.0 G) Es=2.5, ED = 1.5 E) Es=1.0, ED = 1.5 H) Es= 3.0, ED = 1.5 J) None of the above B) $228 H) $154 D) 600 E) 800 J) None of the above 22. Suppose that a $12 per unit tax is placed on buyers. The share of the tax borne by sellers will be: B) 2/3 D) 1/4 E) 1/5 F) 1/6 H) 0 J) None of the above 23. The total tax revenue raised will be: A) $240 C) $216 G) $168 D) O C) ½ I) 1 B) $8 H) $216 24. The excess burden of the tax will be: A) $16 C) $32 I) O G) $144 C) Es=2.5, ED = 1.0 F) Es= 1.5, ED = 1.5 I) Must be equal in equilibrium F) 900 E) $192 D) $204 J) None of the above. E) $48 D) $24 J) None of the above F) $180 F) $128
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