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Which of the following correctly shows the 'pecking order' for financing, showing the most important first?
Total Fixed Cost
The sum of all costs that do not change with the level of output or activity over a short period, such as rent, salaries, and equipment maintenance costs.
Average Total Cost
The total cost of production divided by the number of units produced.
Implicit Costs
The opportunity costs of using resources owned by the firm for its project instead of selling or renting them to others.
Fixed Costs
Costs that do not vary with the level of production or output, such as rent, salaries, and insurance.
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