1. Please describe briefly in words how the provision of free, public schooling could lead to a decrease in school consumption for some consumers.

2. Please explain briefly what an isoquant is showing you.

3. Which of the following is true of fixed costs?

a. Fixed costs can be changed, but it is extremely costly to do so in a short period of time. Therefore, in the short run not all input factors are flexible

b. Fixed costs can be changed immediately. Therefore, we do not observe inefficiencies in the economy.

c. Fixed costs can never be changed. Therefore, companies do not change their output over time.

d. Fixed costs are not an issue economists deal with. The term relates to psychology.

4. Consider the diagram below. At which point does Labor have a negative marginal product?