1. Consider the vectors below for a constant input, capital (K), and a variable input, labor (L). K L 3 5 3 6 3 7 3 8 3 9 3 10 3 11 3 12 3 13 3 14 3 15 3 16 3 17 3 18 3 19 3 20 The production function is given as: Q=0.33*K0.25*L0.75, where Q is the hourly output per line. Given the above inputs vector, the minimum amount of production is _____ units (per hour, per line). Note: Round your answer to two decimal points. 2. Given the information in Question No. 1, the maximum amount of production is _____ units (per hour, per line). Note: Round your answer to two decimal points. 3. Given the information in Question No. 1, the minimum amount of marginal product of labor is _____ units. Note: Round your answer to two decimal points. 4. Given the information in Question No. 1, the maximum amount of marginal product of labor is _____ units. Note: Round your answer to two decimal points. 5. Consider the information in Question No. 1. Plotting the marginal productivity of labor (MPL) in a coordinate system with L on horizontal axis and MPL on vertical axis, the marginal productivity of labor is a: Group of answer choices downward-sloping curve. fully convex with downward- and upward-sloping portions. upward-sloping curve. fully concave curve with upward- and downward-sloping portions. 6. Consider the information in Question No. 1. The average product of labor (APL) is: Group of answer choices fully concave curve with upward- and downward-sloping portions, unlike MPL. also downward-sloping. also upward-sloping. also fully convex with downward- and upward-sloping portions. fully convex with downward- and upward-sloping portions, unlike MPL. upward-sloping, unlike MPL. downward-sloping, unlike MPL. also fully concave curve with upward- and downward-sloping portions. 7. Consider the information in Question No. 1 and your computation for varying levels of output, Q. Also, consider the profit function below (measured in dollars): Profit=50*Q-8.5*Q2.25 The maximum amount of operating profit is _____ (per hour, per line). Note: Round your answer to two decimal points. 8. Consider your answer to Question No. 7. Assume that there are 5 lines of production at this firm. Each line has 3 machineries (K=3, per line per hour). At any given hour, therefore, there are 15 machineries operating at this firm. How many labor force will be employed at this firm, per hour, when profit is at its maximum level? 9. Consider your answer to Question No. 7. Also keep in mind that there are 5 lines of production at this firm. Also, assume that each line operates for 21 hours per day, 6 days per week, and 52 weeks per year. The maximum annual profit is about _____ million dollars. Note: Round your answer to two decimal points. 10. Consider your answer to Question No. 7. At the maximum level of profit: Group of answer choices marginal product of labor is five times larger than average product of labor. total revenue is almost equal to total cost. marginal profit is almost equal to average profit. marginal revenue is five times larger than marginal cost. marginal revenue is almost equal to marginal cost. total revenue is five times larger than total cost. marginal profit is five times larger than average profit. marginal product of labor is almost equal to average product of labor. 11. A new investment is expected to return $15,000 per year, starting from next year (t=1) for ten periods (i.e., from t=1 to t=10). Thus, the sum of the expected returns over those periods is $150,000. How much is the sum of the present value of the expected return over those periods, assuming that the annual interest rate is 5%? Note: Round your answer to two decimal points. 12. Consider the information in Question No. 11. For this investment, an initial amount of $25,000 should be paid this year (t=0). As of next year (t=1), five equal payments of $20,000 should also be paid (i.e., from t=1 to t=5). Thus, the sum of the required investment expenditure over those periods is $125,000. How much is the sum of the present value of the required investment expenditure over those periods, assuming that the annual interest rate is 5%? Note: Round your answer to two decimal points. 13. Everyone being on-board with 5% discount rate, the shareholders at this firm have decided that they will take on an investment only if the net present value of the investment exceeds 10% of the initial investment expenditure. Considering the information in Questions No. 11 and 12, do they take on this investment? Group of answer choices Yes, they do--the net present value is greater than 25% of the initial investment expenditure, let alone 10%. No, they do not--the net present value is less than 5% of the initial investment expenditure, let alone 10%. Yes, they do--the net present value is greater than 20% of the initial investment expenditure, let alone 10%. No, they do not--the net present value is less than 10% of the initial investment expenditure. No, they do not--the net present value is almost equal to zero. Yes, they do--the net present value is greater than 15% of the initial investment expenditure, let alone 10%. 14. For the record, what is the net present value of this investment? Round your answer to two decimal points. 15. The demand function below is estimated using the data generated by a randomized controlled trial: Lnqxd=a+b*Lnpx+c*LnpY+d*Lnpz+e where qxd is the quantity demanded of the product of interest (X), px is the price of the product of interest (X), py is the price of a substitute product (Y), and pz is the price of a complement product (Z). Also, e is the error term. Parameter b is statistically significant and is estimated to be equal to -0.05, with a very small standard error. A 10 percent increase in px is expected to reduce qxd by _____ percent. (Note: Round your answer to only one decimal points.) 16. Consider the information in Question No. 15. And only focus on parameters c and d. Which one of these two parameters is expected to be greater than zero? Group of answer choices Neither of the parameters. The answer depends on whether product x is a necessity or a luxury product. Only parameter d. The answer depends on whether product x is a normal or an inferior product. Both parameters. Only parameter c. 17. Consider the information in Question No. 15. And only focus on parameters c and d. Which one of these two parameters is expected to be less than zero? Group of answer choices The answer depends on whether product x is a normal or an inferior product. Neither of the parameters. Only parameter d. The answer depends on whether product x is a necessity or a luxury product. Only parameter c. Both parameters. 18. Download this dataset Download this dataset. It only includes one variable, capturing the variations in output of one product (Q). Consider the total cost function below: TC=10+10*Q-0.9*Q2+0.04*Q3 Using the aforesaid dataset, compute the average total cost (ATC) and marginal cost (MC). The ATC and MC are almost equal when output is about _____ units. 19. Consider the information in Question No. 18. The MC curves is: Group of answer choices fully convex, with downward- and upward-sloping parts. fully concave, with upward- and downward-sloping parts. upward-sloping only where we have cost complementarity. downward-sloping. downward-sloping only where we have cost complementarity. upward-sloping. 20. Consider the information in Question No. 18. The minimum for ATC is about _____ dollars. Note: Round your answer to two decimal points. 21. Consider the information in Question No. 18. Choose the correct statement: Group of answer choices Diseconomies of scale are observed over a large range of variations in output. Diseconomies of scope are observed over a large range of variations in output. Economies of scope are observed over a large range of variations in output. Economies of scale are observed over a large range of variations in output. We observe constant return to scale over the entire range of output variation. We observe constant return to scope over the entire range of output variation