Question 1 0 l 1 point A firm has the following short run production function: q=4L-5_ The price of output is $28 per unit and the price of labour is $7. The amount of labour the firm demands in order to maximize short run profits is a) 64 b) 16 c) 2.8 d)8 Question 2 1 l 1 point For the production function q = 25K + 30L, the equation for a typical isoquant is a) none of these choices b) K = (gr235015 C) L = % 30K C\" L = q 25 ElK=qT2 Question 3 0 l 1 point Suppose a perfectly competitive firm has the following cost function: 8T0 = 100 -l- 25g -l- Q2. If the market price is equal to $65. at what level of output should the firm operate to maximize profits? 3) 10 b) 30 c) 20 d)0 Question 4 0 / 1 point Suppose the firm, Gentec, produces hearing aids according to the following production function: q = K.L. Which of the following statements is true? Panel A Panel B MP MP Quantity of input Quantity of input Panel C Panel D MP MP Quantity of input Quantity of input a) the marginal product of labour is best illustrated by Panel B and the marginal product of capital is best illustrated by Panel B. "b) the marginal product of labour is best illustrated by Panel D and the marginal product of capital is best illustrated by Panel C. c) the marginal product of labour is best illustrated by Panel A and the marginal product of capital is best illustrated by Panel B. Od) the marginal product of labour is best illustrated by Panel B and the marginal product of capital is best illustrated by Panel C.Question 5 1 / 1 point Consider a firm in a competitive industry. The firm's short run average cost curve and short run marginal cost curve are depicted below. All firms in the market are identical. Suppose the market is in equilibrium. If the price in the market is $600, SMC 1800 1500 1400 SAC ODEL 1200 a) this firm will maximize profits by producing 1 unit of output. b) this firm will maximize profits by producing 6 units of output . c) this firm will make positive profits. O d) a and c e) band c