1) Which of the following is correct?

a-The short run is the same for all firms.

b-The long run is the time frame in which all resources are fixed.

c-The short run for a firm can be longer than the long run for the same firm.

d-The long run is the time frame in which the quantities of all resources can be varied.

The long run does not exist for some firms.

2) The average product curve

a-shows how productivity changes as output changes.

b-initially falls then rises.

c-intersects the marginal cost curve when the average product curve is at its maximum.

d-initially rises and then falls.

e-rises as average variable cost increases

3) The long run is a time period that is

a-long enough to change the amount of labor employed.

b-None of the above answers describes the long run.

c-long enough to change the amount of labor employed but not to change the size of the plant.

d-five years or longer.

e-long enough to change the size of the firm's plant and all other inputs.

3) Suppose the Miami Dolphins are considering adding another backup quarterback to their roster. If the salary the Dolphins would have to pay equals $1,000,000 and the value of marginal product of the new quarterback equals $1,200,000, to maximize their profit the Dolphins should

a-not add the new quarterback.

b-add two new quarterbacks.

c-not add the new quarterback and, in fact, get rid of at least one other backup quarterback.

d-Not enough information is given to determine if the Dolphins should hire the quarterback.

e-add the new quarterback.