Examlex
Factor.
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Average Total Cost
The total cost of production (fixed plus variable costs) divided by the quantity of output produced.
AFC
Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced; a measure of economies of scale.
AVC
Average Variable Cost is the per-unit variable cost of production, which changes with the level of output.
Average Variable Cost
The cost per unit of output that varies directly with the volume of production, excluding fixed costs.
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