The short run is defined as a period during which:a.one or more inputs cannot be freely varied.b.labor is counted as a fixed input.c.all inputs are fixed.d.all inputs are variable.QUESTION 2Which of the following statements is True? TP - Total Product; AP - Average Product; MP - Marginal Product.a.When the TP curve is rising, the MP curve is above the TP curve.b.The TP, AP and MP curves do not have any relationship with one another.c.When the AP curve is falling, the MP curve is above the AP curve.d.When the AP curve is rising, the MP curve is above the AP curve.QUESTION 3The general rule for allocating a productive resource efficiently across different production activities of the same product, like fishing boats in the example that we discussed in the class, is to choose the allocation for which the:a.Average product is the same in every activity.b.Marginal product is the same in every activity.c.Total product is the same in every activity.d.Average product is equal to Marginal product in every activity.QUESTION 4The rate at which one input can be exchanged for another without altering output is the:a.the slope of the average product curve.b.the slope of the total product curve.c.the slope of the marginal product curve.d.the slope of the isoquant.QUESTION 5The production function of a firm is given by Q=K1/2L1/2, where Q, K and L are output, capital and labor, respectively. Which of the following statements is True? a.Depending on the inputs, the technology displays all three situations with respect to returns to scale: constant, increasing and decreasing.b.The technology displays constant returns to scale for some combinations of inputs and increasing returns to scale for other combinations of inputs.c.The technology displays constant returns to scale.d.The technology displays increasing returns to scale.QUESTION 6A firm sells coffee powder by using coffee beans and grinding machines. Considering grinding machines and coffee beans as inputs, what is the most likely shape of the isoquants? a.smooth curves.b.negatively sloped straight lines.c.L-shaped.d.positively sloped straight lines.QUESTION 7Total cost is broken into two components, which are:a.average cost and fixed cost.b.average cost and marginal cost.c.variable cost and marginal cost.d.fixed cost and variable cost.1 points QUESTION 8The vertical distance between the total variable cost and total cost curves:a.is everywhere equal to zero.b.is everywhere equal to marginal cost.c.is everywhere equal to total fixed cost.d.increases at a decreasing rate.QUESTION 9A firm has production given by Q=KL, where Q, K and L denote output, capital and labor respectively. In the short run, the firm uses 2 units of capital. The price of capital and labor are $2 and $3, respectively. What is the Fixed Cost (FC)?a.8b.4c.2d.2Q.QUESTION 10A firm has production given by Q=2KL, where Q, K and L denote output, capital and labor respectively. In the short run, the firm uses 3 units of capital. The price of capital and labor are $3 and $12, respectively. The Average Variable Cost (AVC) function is:a.9.b.2Q.c.2.d.9+2Q.

The United States is known as the "land of opportunity." Every day, inventors and entrepreneurs seek to create better products that will enhance the lives of people in society. Of course, for many, it is their own self-interest that encourages them to do so. They create in the hopes that their hard work and determination will result in a large paycheck! Think about the items that you have now that help make your life easier. What's missing? Can you think of something that would make your life or one of your relative's lives better? This assignment requires you to put on your "inventor's hat" and your "thinking cap"! In a short essay of at least two paragraphs, summarize your idea for an invention that would make your life or someone in your family's life easier. In your essay, you should answer the following questions:What does the item look like?What function does the item perform?How does it make someone's life easier?What factors of production will go into making the item?Do a little bit of research on the Internet to find out how you might obtain the funding necessary to start your business and/or bring your new products to the marketplace. Explain what you find. Who might be interested in helping you fund your new invention?