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 the phrases below: a) What you give up in 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 ____.

Which situation best illustrates an example of an opportunity cost?A.A restaurant offers new customers discounted rates in order to attract more loyal customers over time.B.A retailer decides to stop selling a certain brand of electronics because it has been in low demand.C.A factory increases wages for its workers but does not have enough money left over to invest in new machinery.D.A business owner performs a cost-benefit analysis to decide on a price for his newest product.

An opportunity cost is*1 pointA cost common to all alternatives in question and not clearly or practically allocable to any of the alternativesThe profit foregone by selecting one alternative instead of anotherA cost that may be shifted to the future with little or no effect on current operationsThe difference in total costs that results from selecting one alternative instead of another

An example of an explicit cost of production would be theGroup of answer choicescost of forgone labor earnings for an entrepreneur.lost opportunity to invest in capital markets when the money is invested in one's business.lease payments for the land on which a firm's factory stands.value of the time the business could've spent producing something else.

For make-or-buy decisions, relevant costs include:Group of answer choicesdifferential costs plus fixed costsincremental costs plus differential costsincremental costs plus sunk costsincremental costs plus opportunity costs

What is meant by: Total Cost includes opportunity cost?