Examlex
Match the function with its graph.
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Average Fixed Cost
The fixed costs of production divided by the quantity of output produced, representing how fixed costs dilute as more units are produced.
Variable Costs
Costs that vary directly with the level of production or business activity, such as materials and labor used in the production of goods.
Fixed Costs
Costs that do not vary with the level of output or sales in the short term, such as rent, salaries, or loan payments.
Long Run
A period of time in economics in which all factors of production and costs are variable, allowing all inputs to be adjusted.
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