Question

This chapter discusses many types of costs: opportunity cost, total cost, fixed cost, variable cost, average total cost, and marginal cost. Fill in the type of cost that best completes each sentence: a. What you give up for taking some action is called the _____. b. ______ is falling when marginal cost is below it and rising when marginal cost is above it. c. A cost that does not depend on the quantity produced is a(n) ______. d. In the ice-cream industry in the short run, _______ includes the cost of cream and sugar but not the cost of the factory. e. Profits equal total revenue minus ______. f. The cost of producing an extra unit of output is the _______.

Answer 1

Answer:

see below

Explanation:

a. What you give up for taking some action is called the opportunity cost.

b. Average total cost is falling when marginal cost is below it and rising when marginal cost is above it.

c. A cost that does not depend on the quantity produced is a fixed cost.

d. In the ice-cream industry in the short run variable costs includes the cost of cream and sugar but not the cost of the factory.

e. Profits equal total revenue minus  total costs.

f. The cost of producing an extra unit of output is the marginanal cost.