Part II: Fill in the blank (4 pts. each) 1. is equal to the total fixed costs (TFC) divided by output. is the difference between the highest and lowest number in a set. 3. If the percentage change in cost divided by the percentage change in output is greater than one, then there exists returns to size. is the largest asset on US ag producer's balance sheets. 5. The least cost combination of inputs is found at the level where the input substitution ratio equals the ratio. Part III: Short answer (10 pts. each) 1. Describe at least two ways to improve managerial efficiency. 2. Describe at least two types risks facing producers and how to mitigate them