You own a restaurant which buys its meat from a distributor but grows its own vegetables, for use in food preparation. There is an opportunity cost even when you buy the meat, because when you pay the cash, you forego other alternative uses for the money. But in the case of the vegetables, there is another opportunity cost involved. Which of the following statements best describes the two types of costs involved in this example?

Group of answer choices

Buying the meat is a fixed cost, whereas the vegetables are a variable cost.

Buying the meat, a direct expenditure, is an explicit cost. On the other hand, using the vegetables has an implicit cost, because you have to consider that since you grow them, you have to factor in that you could have sold those vegetables somewhere else.

Buying the meat is an implicit cost, whereas the vegetables are an explicit cost.

Buying the meat is averaged out as an average total cost (ATC), whereas the vegetables can only be considered as average variable cost (AVC).