1. Given a demand equation Q = 100 - 10 P, what is the inverse demand? Note that Q refers to the quantity demanded even if we do not represent it by Qd

A. P = 100 - 10 Q

B. P = 100 - 0.10 Q

C. P = 10 - 10 Q

D. P = 10 - 1/10 Q

E. No correct answer

2. Given the information in number 8, what is the total revenue equation? Note: caret (^) is used to indicate that the number next to it is an exponent

A. TR = 10 Q - 0.10 Q^2

B. TR = 100 Q - 10 Q^2

C. TR = 100 Q - 10 Q^3

D. TR = 10 Q - 10 Q^2

E. No correct answer

3. Which is the correct formula for the total cost of production?Note: TC is total Cost, AFC is average fixed cost, AVC is average variable cost, MC is marginal cost, TVC is total variable cost, TFC is total fixed cost, and Q is output

A. TC = (AFC + AVC) (Q)

B. TC = TVC + TFC

C. TC = (MC)(Q)

D. A and B are correct

E. A, B and C are correct

4. Given a demand equation: Q = 39 - 0.5 P, what is the equation for the inverted demand?

A. P = 39 - Q

B. P = 39 - 2Q

C. P = 78 - 2Q

D. P = 78 - 0.5Q

E. No correct answer

5. Given the inverted demand equation that you find in # 16, find the total revenue equation. Note the caret (^) denotes that the number next to it is an exponent. Thus Q^2 is read square of the quantity demanded

A. TR = 39Q - Q^2

B. TR = 39Q - 2Q^2

C. TR = 78Q - 0.5Q^2

D. TR = 78Q - 2Q^2

E. No correct answer

6. Given the total revenue function you found in # 17, derive the profit function if the total cost function is TC = 10 + 2Q.

A. Profit = - 2Q^2 + 78Q - 10

B. Profit = - 2Q^2 + 80Q - 10

C. Profit = - 2Q^2 + 76Q - 10

D. Profit = 20^2 + 76Q - 10

E. No correct answer

7. Given the total revenue and the total cost function in # 18, the corresponding marginal revenue is computed as MR = 78 - 4Q, while the marginal cost is MC = 2, find the optimal level of output that maximizes profits where MR = MC

A. Q = 18

B. Q = 19

C. Q = 20

D. Q = 21

E. No correct answer

8. Given the total revenue and the total cost functions in # 18, what is the total profits if the firm produces 18?

A. 708

B. 710

C. 712

D. 714

E. No correct answer

9. Given the total revenue and total cost functions in # 18, what is the total profits if the firm produces Q = 19?

A. Profit = 708

B. Profit = 710

C. Profit = 712

D. Profit = 714

E. No correct answer

10. Given the total revenue and the total cost functions in # 18, what is the total profits if the firm produces Q = 20?

A. Profit = 708

B. Profit = 710

C. Profit = 712

D. Profit = 714

E. No correct answer

11. . Given the total revenue and the total cost functions in # 18, what is the total profits if the firm produces Q = 21?

A. Profit = 708

B. Profit = 710

C. Profit = 712

D. Profit = 714

E. No correct answer

12. How much is the total fixed costs given the total cost function in # 18 where TC = 10 + 2Q ?

A. TFC = 2Q

B. TFC = Q

C. TFC = 10

D. TFC =100

E. No correct answer