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Variable Inputs
Inputs in production that change in quantity depending on the level of output, such as raw materials and labor.
Marginal Cost
The expense associated with manufacturing an extra unit of a product or service.
Average Fixed Cost
is calculated by dividing the total fixed costs of production by the quantity of output produced, showing the cost per unit of output.
Total Variable Cost
The sum of all variable expenses related to the production of goods or services, which vary with the level of output.
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