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The second component of the two-process theory of avoidance is
Average Fixed Cost
The fixed cost divided by the quantity of output, representing the fixed cost per unit of output.
Total Fixed Costs
The sum of all costs that remain constant regardless of the level of production or output in a business.
Variable Costs
Costs that change in proportion to the good or service that a business produces.
Fixed Costs
Expenses that do not change with the amount of goods or services produced by a business.
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