Final answer:
A facility producing Minute Maid frozen orange juice would likely incur variable, fixed, and direct costs, with variable costs being raw materials, energy, and labor; and fixed costs like rent and managerial salaries. Costs such as average, variable, and marginal are measured on a per-unit basis.
Step-by-step explanation:
To answer the question of what type of cost would likely be incurred by a facility engaged in producing Minute Maid frozen orange juice, it's important to understand the distinctions between different costs. Variable costs are expenses that change in proportion to the activity of a business. In the case of Minute Maid, variable costs are likely to include raw materials like oranges, energy costs for freezing the juice, and labor costs for the employees on the production line. These costs vary with production levels. On the other hand, fixed costs are unlikely to change in the short term, regardless of how much juice is produced; these include rent or mortgage on the factory, insurance, and salaries for managerial staff.
A mixed cost has both fixed and variable components. Direct costs are directly attributable to the product being produced, such as the oranges for the juice. When analyzing production over the short run, costs like average cost, average variable cost, variable costs, and marginal cost can be measured on a per-unit basis. Each of these costs provides insight into the cost structure and behavior of the business as production levels change.