1. Distinguish between explicit and implicit costs, giving 3 examples of each using the production of higher education.

2. Which of the following are short-run and which are long-run adjustments?

a.Freddie's Frozen Custard builds 5 new restaurants.

b.Pioneer Balloon Corporation hires 200 more production workers.

c.Gaddert Farms increases the amount of fertilizer used on their corn crop.

d.Boeing closes its manufacturing facility in Wichita, sells the plant and moves to Oklahoma City.