As I wrote in Discussion Assignment #2, one of the best ways you can study is to create your own potential exam questions. This assignment asks you to create one original cost minimization short answer question and then provide a solution (with an explanation and the work to solve it). We only covered cost minimization for Cobb-Douglas and Perfect Substitutes in class, so I expect you will choose one of those two production functions, but you can choose a different one if you would like. Example A firm has a production function of the following form, [insert utility function], using labor (L) and capital (K) as inputs. The wage is equal to [insert wage value] and the rental rate of capital is equal to [insert rental rate of capital value]. The firm has a target output equal to [insert target output value]. a) Calculate the firm's long-run optimal inputs. b) Graph the optimal inputs, including the isocost curve and isoquant associated with the optimal inputs. c) Now imagine that it is the short run and the firm's capital is fixed at [insert value]. Recalculate the optimal inputs for the short run. d) Draw the short-run optimal inputs and the associated isocost curve on the graph that you drew in part (b). Be sure that you clearly label the short-run and the long-run solution. [Similar to before, it should provide brief explanations for how to solve the problem. Not just the math.] The best place to look for examples of what questions should generally look like are the Chapters 6 and 7 Practice Problems. The format of your assignment is open-ended, as long as you clearly communicate how to reach the solution to the question you create. You can type it, write it out on paper/tablet, make a presentation, record a video, etc.