Deck 23: Extension: A: Firm Supply

Question 1

suppose that Irma's production function is f(x₁, x₂)=(min{x₁, 3x₂})^1/2.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)= p/8.
E)S(p)= min{2p, 18p}.

Answer 1

S(p)= p/8.

Question 2

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.

Answer 2

$96.

Question 3

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

Answer 3

0

Question 4

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.

Question 5

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

Question 6

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.

Question 7

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 8

suppose that Irma's production function is f(x₁, x₂)= (min{x₁, 3x₂})^1/2.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)= p/12.
D)S(p)= p(max{w₁, 3w₂})².
E)S(p)= min{3p, 27p}.

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

suppose that Irma's production function is f(x₁, x₂)= (min{x₁, 2x₂})^1/2.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)= p/12.
C)S(p)= p(min{w₁, 2w₂})².
D)S(p)=p(max{w₁, 2w₂})².
E)S(p)= min{3p, 12p}.

Question 11

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 12

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 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)8
C)4
D)6
E)12

Question 14

suppose that Irma's production function is f(x₁, x₂)=(min{x₁, 3x₂})^1/2.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)= p/20.
E)S(p)= min{5p, 45p}.

Question 15

suppose that Irma's production function is f(x₁, x₂)= (min{x₁, 3x₂})^1/2.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)= p/14.
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}.