Fixed cost, variable cost, total cost, opportunity cost , average total cost and marginal cost.

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 typeof cost that best completes each sentence:a. What you give up in taking some action is calledthe _________.b. _________ is falling when marginal cost is below itand rising when marginal cost is above it.c. A cost that does not depend on the quantityproduced is a(n) _________.d. In the ice-cream industry in the short run,_________ includes the cost of cream and sugarbut not the cost of the factory.e. Profits equal total revenue minus _________.f. The cost of producing an extra unit of output isthe _________.

Answer 1

Question

Chapter 12, Problem 1PA

To determine

Fixed cost, variable cost, total cost, opportunity cost, average total cost and marginal cost.

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

Please define total cost, average total cost, and marginal cost. Explaine how these terms are related?

Define total cost, average total cost, and marginal cost. How are they related?