ePack: Principles of Microeconomics 6th Edition by Gregory Mankiw

Exercise 1

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 each sentence:
a. What you give up for 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 less ______.
f. The cost of producing an extra unit of output is the ______.