MIC chapter 13

Costs that require an outlay of money by the firm are .................

• Implicit costs

• Explicit costs

• Marginal cost

• Opportunity cost

Marginal cost is ............................

• Cost that does not require an outlay of money by the firm

• Cost that varies with the quantity of output produced

• The increase in total cost that arises from an extra unit of production

• Cost that does not vary with the quantity of output produced

Average total cost = .........................

• Fixed cost / Quantity

• Total cost / Quantity

• Variable cost / Quantity

.............. is falling when marginal cost is below it and rising when marginal cost is above it.

• Average total cost

• Total cost

• Fixed cost

• Variable cost

A cost that does not depend on the quantity produced is a(n) ............................

• Total cost

• Marginal cost

• Variable cost

• Fixed cost

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

• Variable cost

• Fixed cost

• Marginal cost

• Opportunity cost

Profits equal total revenue less ........

• variable cost

• fixed cost

• total cost

• marginal cost

.................... equals fixed cost divided by the quantity of output

• Average variable cost

• Average fixed cost

• Average marginal cost

• Average total cost

What you give up for taking some action is called ...................

• Opportunity cost

• Variable cost

• Explicit cost

• Marginal cost

The average total cost curve is ..................

• upward

• downward

• U-shaped