Correct answers are highlighted just need to understand how to get to that answer with proper and detailed solutions

20. You are given the following short-run production function for the firm: Q = 24L (0.01)( L2 ), where L = number of workers hired per day, Q = output per day. The rm is a perfect competitor in both the output & input (i.e. labour) markets. The price of output is $10.00 per unit and labour costs $20.00 per day, the number of workers hired per day by the rm will be: A) 100 B) 200 C) 400 D) 600 E) 800 F) 900 G) 1000 H) 1100 I) 1300 J) None ofthe above 21-24. The demand and supply of spam is given by: Demand: P = 100 2Q Supply: P = 40 + Q Where P is the price in dollars and Q is the quantity in units. Initially, the market is in equilibrium at Q=20, P=S60. Questions 21 through 24 refer to this market for spam. 21. In equilibrium the elasticity of supply and the elasticity of demand arc: A) ES=1.0,ED=1.0 B) ES= 1.5,ED= 1.0 C) 135:2.5, ED=1.O D) ES=3.0,ED= 1.0 E) ES: 1013,]: 1.5 F) ES=1.5,ED=1.5 G) ES=2.5,ED=1.5 H) ES=3.0,ED=1.5 I) Must be equal in equilibrium J) None of the above 22. Suppose that a $12 per unit tax is placed on buyers. The share ofthe tax borne by sellers will be: A) 18 B) 2/3 C) '/2 D) 114 E) 1/5 F) 1J6 G) 2/7 H) 0 I) 1 J) None ofthe above 23. The total tax revenue raised will be: A) $240 B) $228 C) $216 D) $204 E) $192 F) $180 G) $168 H) $154 1) 0 J) None ofthe above 24. The excess burden of the tax will be: A) $16 B) $8 C) $32 D) $24 E) $48 F) $123 G) $144 H) $216 1) 0 J) None ofthe above 25. A rm in a perfectly competitive industry has total costs in the shortrun given by: TC=81+4q+q2, 122 FC = 65 where q is output per day and TC is the total cost per day in dollars. The rm has xed costs of $65 (already included in the TC equation above). At what price does this rm shut down in the short-run? A) $0 B) $10 C) $12 D) $20 E) $21 F) $22 G) $23 H) $32 1) S48 J) none ofthe above