This chapter discusses many types of costs: opportunity cost, explicit costs, fixed cost, variable cost, average fixed cost, and average variable cost. Fill in the type of cost that best completes each sentence.
In a pizza industry, the cost of the factory is a(n) _______ (average fixed cost/average variable cost/explicit cost/fixed cost/opportunity cost/variable cost) only in the short run but not in the long run.
_______(Average average cost/Average fixed cost/Explicit costs/Fixed cost/Opportunity cost/Variable cost) is always falling as the quantity of output increases.
A cost that depends on the quantity produced is a(n) _______ (average fixed cost/average variable cost/explicit cost/fixed cost/opportunity cost/variable cost).
The term ________ (average fixed cost/average variable cost/explicit costs/fixed cost/opportunity cost/variable cost) refers to all the things you must give up for taking some action.
The term _______ (average fixed cost/average variable cost/explicit costs/fixed cost/opportunity cost/variable cost)refers to costs that involve direct monetary payment by the firm.
_______ (Average fixed cost/Average variable cost/Explicit costs/Fixed cost/Opportunity cost/Variable cost) is falling when marginal cost is below it and rising when marginal cost is above it.