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4. Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and implicit costs of attending college? 6. Which of the following are short-run and which are long-run adjustments? A. Wendys builds a new restraurant B. Harley-Davidson Corporation hires 200 more production workers. C. A farmer increases the amount of fertilizer used on his corn crop. D. An Alcoa aluminum plant adds a third shift of workers. 7. Complete the following table by calculating marginal product and average product from the data given Explain why marginal product eventually declines and ultimately becomes negative. What bearing does the law of diminshing returns have on marginal costs? Be specific. 8. Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping chargers, payments for raw materials, real estate taxes, executive salaries, insurance premimums, wage payments, sales taxes, and rental payments on leased office machinery.
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