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During shared reading, students should be encouraged to:
Variable Costs
Costs that change in proportion to the level of output in the production process.
Total Fixed Cost
The sum of all costs that remain constant regardless of the level of production or output in the short run.
Marginal Cost
The expense associated with manufacturing an extra unit of a product or service.
Variable Cost
Variable cost pertains to a cost that changes in proportion with the level of activity or volume of production in a company.
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