The following items are used to describe various economic characteristic of costs

1. Opportunity costs
2. Out of pocket costs
3. Sunk costs
4. Differential costs
5. Marginal costs
6. Average costs

Instructions: Choose one of the items listed above to characterize each of the amounts describe below

1. The management of a high-rise office building uses 3,100 square feet of space in the building for its own management functions. This space could be rented for 335,000. What economic term describe this 335,000 in lost rental revenue?
2. The cost of building an automated assembly line in a factory is 700,000. The cost of building a manually operated assembly line is 475,000. What economic term is used to describe the difference between these two amounts?
3. Referring to the preceding question, what economic term is used to described the 700,000 building the automated assembly line?
4. The cost incurred by a mass customizer such as dell computer to produce one more unit in its most popular line of laptop computers.
5. The cost of feeding 400 children in a public-school cafeteria is 740 per day or 1.85 per child per day. What economic term describes this 1.85 cost?
6. The cost of including one extra child in a day-care center
7. The cost of merchandise inventory purchased two years ago which is now obsolete.