Question 30 0 I 1 point Suppose a competitive market is in equilibrium given a price of $10 and an output level equal to 100 units. The exact supply and demand functions are not known but the government knows that the market supply is perfectly elastic and the elasticity of demand is -1.2. Your boss wants you to determine how much output will change if a tax of $0.50 per unit of output is introduced. As the government's chief analyst, you a) estimate that the deadweight loss from the tax is zero. b) estimate that output will fall by 20 units. c) estimate that market output will fall by 6 units. d) tell your boss that it is impossible to estimate without knowing the exact supply and demand functions. 1 / 1 point Question 29 Suppose a monopolist faces an inverse demand curve P=40-0.2Q and has a constant marginal cost equal to 20. The deadweight loss (inefficiency) associated with the monopolist is a) $500 O b) $0 c) $250 O d) $50Question 27 0 I 1 point Barnie's utility function is given as U = .1131 0'759320'25 where x1 is the quantity of steak and x2 is the quantity of potatoes. Barnie's income is $2.400. A steak costs $8.00 and the price of a bag of potatoes is $4.00. How much income wiil Barnie spend on steak? a) $1,800 b) $1,200 c) $600 d) $1,600 Question 22 0 I 1 point Andre has preferences represented by the utility function le, y) = 2x + 3y. He consumes 10 units of good x and 4 units of good y. Suppose his consumption of good In: is lowered to 4, how many units of y must he have in order to be exactly as well off as before? a)6 b)5 c113 d)8 Question 11 1 I 1 point Main Content Suppose for a particular production function. the conditional factor demands for labour and capital are given by L = 2q and K=5q. If the wage rate is $5 per unit of labour and the price of capital is $2. the long run cost function is a} LC=20q +25 bl LC=20q c) LC=7q d) Lc=20q2 Assume a perfectly competitive firm faces a market price above that individual firm's shutdown price. The firm has the following short run total cost curve: 3T0 = 150 + 50g + 2q2. The firm's short run supply curve is a) q=0.25P-12.5 b) P=4q. c) P=4. d) q=50+4P. 0 / 1 point Question 17 Freckles has a production function q=2L+K. If the price of labour is $8 and the price of capital is $5, how much will it cost Freckles to produce 70 units of output? O a) $280 O b) $350 O c) $1,470 d) $910Question 28 0 I 1 point In a competitive market with a linear upward-sloping supply curve and a linear downward-sloping demand curve. the government imposes a $62 tax per unit bought and sold. The tax causes the equilibrium quantity to fall from 90 units to 75 units. The deadweight loss of this tax is a] $465 b) not enough information to determine. c) $930 d) $2325