14-22. A rm in a perfectly competitive constant cost industry has total costs in the short run given by: TC=4q2+15q+576 q22 where q is output per day and TC is the total cost per day in dollars. The firm has fixed costs of $320 (already included in the TC equation above). The TC equation generates minimum average costs of $1 1 l (per unit) at q = 12. You are also told that this size firm generates minimum long run average costs (that is, minimum LAC occurs at q = 12, with min LAC = $11 1). Questions 14 through 22 concern this firm and this industry. 14. In the short run, shut down price for this firm is: A) $111 B) $84.33 C) $26.67 D) $99 E) $84 F) $80.60 G) $82 H) $96 1) $100 J) $101 15. Now you are told that in the short run there are 1600 rms, including this one, in the industry, all with the same cost curves described above. Suppose that the demand curve facing the industry is given by the equation P = 235 .0075Q where P is the price per unit and Q is the number of units demanded per day. The equilibrium price in the short run is: A)$111 B)$107 C)$115 D)$103 E)$119 F) $99 G) $87 H) $91 1) 895 J) $99 16. Continuing the situation described in question 15 (the short run, with 1600 firms and demand given by P = 235 .0075Q), the profit earned by an individual firm per day in the short run is: A) $0 B) $320 C) $256 D) $144 E) $92 F) $56 G) +3888 H) +3892 I) +$103 J) +$5T6 17. Continuing the situation described in question 15 (demand given by P = 235 .0075Q, 1600 rms in the short run), suppose now that we move into the long run (you are reminded that information on long run costs was given at the beginning ofthe problem). The total output of the industry per day in the long run is: A) 17,600 B) 16,800 C) 16,533 D) 15,600 E) 15,000 F) 16,400 G) 14,400 H) 18,000 I) 18,200 J) 20,600 18. Continuing with question 17', suppose that we are still in the long run. The number of rms in the industry, rounding to the nearest integer, is: A) 1600 B) 1800 C) 1400 D) 1450 E) 1500 F) 1550 G) 1378 H) 1350 I) 1200 J) 800 19. Now return to the situation described in question 15 (the short run, with 1600 rms and demand given by P = 235 - .0075Q). Now suppose that the government imposes a tax on the sellers ofthis product of $20 per unit. In the short run, the total price paid by buyers will be equal to: A)$111 B)$115 C)$103 D) $95 E) $99 F)$105 (3)3107 H)$109 [)3113 J)$123 20. Continue the problem in question 19 (in which the government imposes a tax on the sellers 0fthis product of $20 per unit). In the short run, the fraction of the tax that falls on sellers will be equal to: A) 0 13) 1:10 C) 115 D) 215 E)112 F) 315 G) 7110 H) 415 I) 9110 J) 1 21. Continue the problem begun in question 19 (in which the government imposes a tax on the sellers of this product of $20 per unit). The rm in the short run will earn prots of: A) $0 13) $320 C) $256 D) $144 E) $92 F)$56 G)$176 H)$95 I) $108 J) $115 22. Continue the problem begun in question 19 (in which the government imposes a tax on the sellers of this product of $20 per unit). Now suppose that we are in the long run. The number of rms in the long run, rounded to the nearest integer, will be: A) 1600 13) 1400 C) 1300 D) 1250 E) 1200 F) 1167 G) 1156 H) 1083 I) 1033 J) 833