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##### ECO Multiple Choice Questions

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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?58330Consider 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?11.180.850.52For 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 PX represents the price of good X, PY is 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 product X is given by QXS = -520 + 20PX.a. Find the inverse supply curve.P= + Qb. How much surplus do producers receive when Qx = 400? When Qx = 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 when K = 2 and L = 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 goods X and Y is -4. How much would the price ofgood Y have to change in order to change the consumption of good X by 10 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 by percent.

Paper#56316 | Written in 18-Jul-2015

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