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##### Suppose the production function is given by Q = 5K + 3L. What is the average product of capital..

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Question;Suppose the production;function is given by Q = 5K + 3L. What is the average product of capital when;10 units of capital and 10 units of labor are employed?;5;8;3;30;Consider a market characterized by;the following inverse demand and supply functions: PX = 30 ? 3QX and;PX = 10 + 2QX. Compute the surplus consumers;receive when a \$24 per unit price floor is imposed on the market.;\$0.;\$12.;\$24.;\$6.;Suppose the demand for;good X is given by Qxd= 10 - 2Px+ Py+ M. The price of good X is \$1, the price of;good Y is \$10, and income is \$200. Given these prices and income, how much of;good X will be purchased?;1.;210.;218.;None of the statements;associated with this question are correct.;Suppose market demand;and supply are given by Qd= 100 ? 2P and QS= 5 + 3P. If the government sets a price floor;of \$20 and agrees to purchase all surplus at \$20 per unit, the total cost to;the government will be;\$1,200.;\$20.;\$100.;\$1,300.;Suppose demand is given;by Qxd= 25? 5Px+ 2Py+ Ax, where Px= \$10, Py= \$5, and Ax= \$100. What is the advertising elasticity of;demand for good x?;1;1.18;0.85;0.52;For a cost function C = 100 + 5Q +;2Q2, the average variable cost of producing 10 units of output is;10.;25.;35.;None of the answers;are correct.;Suppose the demand for X;is given by Qxd= 100 ? 2PX? 4PY+ 10M + 2A, where PXrepresents the price of good X, PYis the price of good Y, M is income, and A is;the amount of advertising on good X. Based on this information, we know that;good X is a;substitute for good Y;and a normal good.;complement for good Y;and an inferior good.;complement for good Y;and a normal good.;substitute for good Y;and an inferior good.;You?ve recently learned that the;company where you work is being sold for \$300,000. The company?s income;statement indicates current profits of \$11,000, which have yet to be paid out;as dividends. Assuming the company will remain a ?going concern?;indefinitely and that the interest rate will remain constant at 9 percent, at;what constant rate does the owner believe that profits will grow?Instruction:Round your response to 2 decimal places.;Growth rate of:percent.;The supply curve for productXis given byQXS= -520 + 20PX.;a. Find the inverse supply curve.;P =+Q;b. How much surplus do producers receive whenQx= 400? WhenQx= 1,200?;When QX= 400: \$;When QX= 1,200: \$;A firm produces output;according to a production function:Q=F(K,L) = min {2K,4L}.;a. How much output is produced whenK= 2 andL= 3?;b. If the wage rate is \$30 per hour and the rental rate on capital is \$10 per;hour, what is the cost-minimizing input mix for producing 4 units of;output?;Capital;Labor;c. How does your answer to part b change if the wage rate decreases to \$10 per;hour but the rental rate on capital remains at \$20 per hour?;Capital increases and;labor decreases.;It does not change.;Capital decreases and;labor increases.;Capital and labor;increase.;Suppose the cross-price elasticity;of demand between goodsXandYis -4. How much would the price of;goodYhave to change in order to change the;consumption of goodXby 10 percent?percent;If Starbucks?s marketing department;estimates the income elasticity of demand for its coffee to be 2.9, how will;the prospect of an economic bust (expected to decrease consumers? incomes by 4;percent over the next year) impact the quantity of coffee Starbucks expects to;sell?Instruction:Round your response to 2 decimal places.;It will change bypercent.

Paper#55406 | Written in 18-Jul-2015

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