Standardized tests are used in efforts to make schools more accountable.

Suppose there are ten identical manufacturing firms that produce computer chips with machinery (capital, K) and labor (L), and each firm has a production function of the form q = 10KL0.5. What is the industry-level production function?

A) Q = 10K10L5 B) Q = 100KL0.5 C) Q = 100L0.5 D) none of the above

Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The price paid by buyers with the tax is:

A. $2.00. C. $2.50. D. $2.25.