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, thenumber of workers hired per day by the firm will be:A) 100G) 1000B) 200H) 110021-24. The demand and supply of spam is given by:Demand:P=100-2QC) 400I) 1300A) 1/3G) 2/7Supply:P = 40 + QWhere 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 = 1.0A) Es=1.0, ED = 1.0D) Es= 3.0, ED = 1.0G) Es=2.5, ED = 1.5E) Es=1.0, ED = 1.5H) Es= 3.0, ED = 1.5J) None of the aboveB) $228H) $154D) 600E) 800J) None of the above22. Suppose that a $12 per unit tax is placed on buyers. The share of the tax borne by sellers will be:B) 2/3D) 1/4E) 1/5F) 1/6H) 0J) None of the above23. The total tax revenue raised will be:A) $240C) $216G) $168D) OC) ½I) 1B) $8H) $21624. The excess burden of the tax will be:A) $16C) $32I) OG) $144C) Es=2.5, ED = 1.0F) Es= 1.5, ED = 1.5I) Must be equal in equilibriumF) 900E) $192D) $204J) None of the above.E) $48D) $24J) None of the aboveF) $180F) $128

GivenShort-run production function: The firm is in the perfectly competitive market (in both labor…

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

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.3P

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