Max Needs to Create a Plan for His Final Art

question 19

Multiple Choice

Max needs to create a plan for his final art project.Inez,also in the class,passes by and sees Max sitting at an outdoor café,having coffee.He seems really relaxed.Inez asks him how come he isn't stressed thinking about the final project.What does this scenario indicate?

• A) Coffee can help stimulate creative ideas.
• B) Doing "nothing" may be one of the most important creative things we can do.
• C) Max has a good relationship with his art instructor so he's not worried.
• D) Max does his best creative work right before the due date, so he's not in any rush.
• E) It's easy to ask for an extension for the project.

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Definitions:

Constant-cost Industry

An industry in which the input prices do not change as the industry output changes, leading to a supply curve that is perfectly elastic.

Price Per Unit

The cost assigned to a single unit of a product or service, used to determine the total price based on the quantity purchased.

Output Increase

The rise in the quantity of goods or services produced by a company or economy over a certain period.

Long-run Cost Structure

The pattern of costs that a firm faces over a long period when it is free to adjust all of its input levels, including investment in new plant and equipment.