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Definitions:
Marginal Cost
The climb in cost associated with generating another unit of a product or service.
Average Total Cost
The total cost of production (fixed and variable costs combined) divided by the quantity of output produced.
Marginal Cost
The cost of producing one additional unit of a product or service, which can change as the level of production varies.
Average Variable Cost
The total variable costs of production divided by the quantity of output, representing the per-unit variable cost.
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