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Three criteria used for classification of the atmosphere are
Average Variable Cost
The variable cost (cost that changes with production volume) divided by the quantity of output produced.
Profit-maximizing
Refers to the process by which a company determines the price and output level that returns the greatest profit.
MR = MC
An economic principle stating that optimal production level is reached when marginal revenue equals marginal cost.
Marginal Cost
The cost required to produce a subsequent unit of a product or service.
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