Deck 21: A: Firm Supply

Question 1

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 2s² + 50. If the price he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he maximize profits?

A) 2
B) 0
C) 4
D) 3
E) 6

Answer 1

B

Question 2

A firm has a long-run cost function, C(q) = 3q² + 108. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A) $72.
B) $80.
C) $36.
D) $18.
E) $41.

Answer 2

C

Question 3

A firm has a long-run cost function, C(q) = 8q² + 72. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A) $48.
B) $104.
C) $96.
D) $24.
E) $53.

Answer 3

A

Question 4

A firm has a long-run cost function, C(q) = 9q² + 9. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A) $36.
B) $44.
C) $9.
D) $18.
E) $23.

Question 5

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 2s² + 18. If the price he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he maximize profits?

A) 4
B) 0
C) 3
D) 2
E) 6

Question 6

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s² + 75. If the price he receives for repairing a car is $36, then in the long run, how many cars will he fix per week if he maximize profits?

A) 0
B) 12
C) 9
D) 6
E) 18

Question 7

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s² + 108. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximize profits?

A) 0
B) 8
C) 4
D) 6
E) 12

Question 8

In Problem 9, suppose that Irma's production function is f(x₁, x₂) = . If the price of factor 1 is w₁ = $3 and the price of factor 2 is w₂ = $6, then her supply function is given by the equation

A) S(p) = 6p.
B) S(p) =.
C) S(p) = p(min{w₁, 2w₂} )².
D) S(p) = p(max{w₁, 2w₂} )².
E) S(p) = min{ 3p, 12p}.

Question 9

A firm has a long-run cost function, C(q) = 4q² + 4. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A) $8.
B) $4.
C) $24.
D) $16.
E) $13.

Question 10

A firm has a long-run cost function, C(q) = 8q² + 288. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A) $200.
B) $192.
C) $96.
D) $48.
E) $101.

Question 11

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $3 and the price of factor 2 is w₂ = $9, then her supply function is given by the equation

A) S(p) = p(min{w₁, 3w₂} )².
B) S(p) = 6p.
C) S(p) =.
D) S(p) = p(max{w₁, 3w₂} )².
E) S(p) = min{ 3p, 27p}.

Question 12

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $2 and the price of factor 2 is w₂ = $15, then her supply function is given by the equation

A) S(p) =.
B) S(p) = p(max{w₁, 3w₂} )².
C) S(p) = p(min{w₁, 3w₂} )².
D) S(p) = 7p.
E) S(p) = min{ 2p, 45p}.

Question 13

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s² + 108. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximize profits?

A) 0
B) 4
C) 6
D) 8
E) 12

Question 14

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $2 and the price of factor 2 is w₂ = $6, then her supply function is given by the equation

A) S(p) = p(max{w₁, 3w₂} )².
B) S(p) = 4p.
C) S(p) = p(min{w₁, 3w₂} )².
D) S(p) =.
E) S(p) = min{ 2p, 18p}.

Question 15

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $5 and the price of factor 2 is w₂ = $15, then her supply function is given by the equation

A) S(p) = p(max{w₁, 3w₂} )².
B) S(p) = p(min{w₁, 3w₂} )².
C) S(p) = 10p.
D) S(p) =.
E) S(p) = min{ 5p, 45p}.