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Shutdown Point
The level of operations at which a company or business does not generate enough revenue to cover its variable costs, leading to a temporary or permanent closure.
AVC (Average Variable Cost)
The total variable costs (costs that vary with the level of output) divided by the quantity of output produced, representing the variable cost per unit.
MC (Marginal Cost)
The rise in overall expenses associated with the production of an extra unit of a product or service.
Break-Even Point
The level of production or sales at which total revenues equal total costs, resulting in no profit or loss.
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