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A friend asks you why it is that you can download, install, and use Fedora Linux free of charge while Windows requires that you have purchased a license to use it. What can you tell him?
Average Variable Cost
The total variable cost divided by the number of units produced, reflecting the variable cost of producing each additional unit.
Total Variable Cost Curve
A graph that shows the relationship between total variable cost and the level of a firm’s output.
Factor Prices
The prices of the inputs used in the production process, such as labor, capital, and land.
Output
The total amount of goods and services produced by a business, industry, or economy.
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