Should each of the following costs be used in making decisions in an economic context? Why or why not?

1. Explicit costs
2. Foregone income from a job you gave up
3. Interest on a loan to start your business
4. Implicit costs

Determine whether each of the following is true or false:

1. In the short run, insurance on your property is a fixed cost.
2. In the short run, the heating of your warehouse is a fixed cost.
3. In the long run, there are more fixed costs than in the short run.

Assume that you run a concession stand at a small movie theater selling popcorn. Each day you must pay the theater management $50, so this is your fixed cost. If you are able to sell 100 boxes of popcorn each day, the variable cost per box is $0.15. Use these figures to determine average fixed cost, average variable cost, and average total cost.Based on the following table, where do diminishing marginal returns begin to set in? Explain.

Machines	Daily Output
1	300
2	700
3	1,000
4	1,200
5	1,300
6	1,300

If fixed costs are $100 and variable costs are $200 at an output level of 30 units, what are average fixed costs, average variable costs, and average total costs?Explain why the output at which average variable cost is at a minimum is smaller than the output at which average total cost is at a minimum.Refer to Table 10.3 on pg. 265. Total fixed costs are $10 and total variable costs are $18 at an output level of 6 gallons of smoothies. Fully explain how the author arrived at these two figures.