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Average Fixed Cost
This is the total fixed costs of production divided by the number of units produced, reflecting how these costs spread out over the output.
Average Variable Cost
The total variable cost divided by the quantity of output produced.
Average Fixed Costs
The fixed costs of production divided by the quantity of output produced, illustrating how fixed costs per unit decrease as production increases.
Profit-Maximizing
The strategy or approach adopted by a company to increase its earnings to the highest possible level.
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