CHAPTER 23: Firm Supply
MULTIPLE CHOICE
1. Suppose that Dent Carr’s long-run total cost of repairing s cars per week is c(s) = 2s2 + 50. If the price
he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he
maximize profits?
a.
2
b.
0
c.
4
d.
3
e.
6
2. Suppose that Dent Carr’s long-run total cost of repairing s cars per week is c(s) = 3s2 + 108. If the
price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if
he maximize profits?
a.
0
b.
4
c.
6
d.
8
e.
12
3. Suppose that Dent Carr’s long-run total cost of repairing s cars per week is c(s) = 3s2 + 75. If the price
he receives for repairing a car is $36, then in the long run, how many cars will he fix per week if he
maximize profits?
a.
0
b.
12
c.
9
d.
6
e.
18
4. Suppose that Dent Carr’s long-run total cost of repairing s cars per week is c(s) = 2s2 + 18. If the price
he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he
maximize profits?
a.
4
b.
0
c.
3
d.
2
e.
6
5. Suppose that Dent Carr’s long-run total cost of repairing s cars per week is c(s) = 3s2 + 108. If the
price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if
he maximize profits?
a.
0
b.
8
c.
4
d.
6
e.
12
6. In Problem 9, suppose that Irma’s production function is f(x1, x2) = (minx1, 3x2)1/2. If the price of
factor 1 is w1 = $2 and the price of factor 2 is w2 = $15, then her supply function is given by the
equation
a.
S(p) = p/14.
b.
S(p) = p(maxw1, 3w2)2.
c.
S(p) = p(minw1, 3w2)2.
d.
S(p) = 7p.
e.
S(p) = min2p, 45p.
7. In Problem 9, suppose that Irma’s production function is f(x1, x2) = (minx1, 2x2)1/2. If the price of
factor 1 is w1 = $3 and the price of factor 2 is w2 = $6, then her supply function is given by the
equation
a.
S(p) = 6p.
b.
S(p) = p/12.
c.
S(p) = p(minw1, 2w2)2.
d.
S(p) = p(maxw1, 2w2)2.
e.
S(p) = min3p, 12p.
8. In Problem 9, suppose that Irma’s production function is f(x1, x2) = (minx1, 3x2)1/2. If the price of
factor 1 is w1 = $2 and the price of factor 2 is w2 = $6, then her supply function is given by the
equation
a.
S(p) = p(maxw1, 3w2)2.
b.
S(p) = 4p.
c.
S(p) = p(minw1, 3w2)2.
d.
S(p) = p/8.
e.
S(p) = min2p, 18p.
9. In Problem 9, suppose that Irma’s production function is f(x1, x2) = (minx1, 3x2)1/2. If the price of
factor 1 is w1 = $3 and the price of factor 2 is w2 = $9, then her supply function is given by the
equation
a.
S(p) = p(minw1, 3w2)2.
b.
S(p) = 6p.
c.
S(p) = p/12.
d.
S(p) = p(maxw1, 3w2)2.
e.
S(p) = min3p, 27p.
10. In Problem 9, suppose that Irma’s production function is f(x1, x2) = (minx1, 3x2)1/2. If the price of
factor 1 is w1 = $5 and the price of factor 2 is w2 = $15, then her supply function is given by the
equation
a.
S(p) = p(maxw1, 3w2)2.
b.
S(p) = p(minw1, 3w2)2.
c.
S(p) = 10p.
d.
S(p) = p/20.
e.
S(p) = min5p, 45p.
11. A firm has a long-run cost function, C(q) = 9q2 + 9. In the long run, this firm will supply a positive
amount of output, as long as the price is greater than
a.
$36.
b.
$44.
c.
$9.
d.
$18.
e.
$23.
12. A firm has a long-run cost function, C(q) = 8q2 + 288. In the long run, this firm will supply a positive
amount of output, as long as the price is greater than
a.
$200.
b.
$192.
c.
$96.
d.
$48.
e.
$101.
13. A firm has a long-run cost function, C(q) = 4q2 + 4. In the long run, this firm will supply a positive
amount of output, as long as the price is greater than
a.
$8.
b.
$4.
c.
$24.
d.
$16.
e.
$13.
14. A firm has a long-run cost function, C(q) = 8q2 + 72. In the long run, this firm will supply a positive
amount of output, as long as the price is greater than
a.
$48.
b.
$104.
c.
$96.
d.
$24.
e.
$53.
15. A firm has a long-run cost function, C(q) = 3q2 + 108. In the long run, this firm will supply a positive
amount of output, as long as the price is greater than
a.
$72.
b.
$80.
c.
$36.
d.
$18.
e.
$41.