17. When Farmer Bob applies N pounds of fertilizer per acre, the marginal product of fertilizer is 1-(N/200) bushels of corn. If the price of corn is $1 per bushel and the price of fertilizer is $0.20 per pound, then how many pounds of fertilizer per acre should Farmer Bob use in order to maximize Farmer Bob's profits?

1. 40
2. 120
3. 160
4. 200
5. None of these are correct.

18. Suppose the market demand for Paradise Bakery's cookies is given by the equation P=45-(1/2)Q. What quantity sold would maximize the revenue from the cookies?

1. 22.5
2. 40
3. 45
4. 50
5. 55
6. None of these

19. For its cookies Paradise Bakery has the cost function c(Q) =1/3 Q^3, where Q is the number of cookies it can make in one month. If the owner faces a competitive market for cookies, with a price of $100 a case, how many Q will the owner produce?

1. 0
2. 9
3. 10
4. 11
5. 12
6. 15
7. None of these are correct

20. Ann has a production function 4x1+x2. If the factor prices are $12 for factor 1 and $2 for factor 2, how much will it cost Ann to produce 30 units of output?

1. 48
2. 60
3. 75
4. 90
5. None of these are correct.

21. The production function Q = 50K^(0.25)L^(0.25) is characterized by

1. constant returns to scale
2. decreasing returns to scale
3. increasing returns to scale
4. None of these are correct.