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Fixed Cost
Expenses that do not change with the level of output production, such as rent, salaries, or equipment leases.
Output
The quantity of a product or service produced within a given period by a company, sector, or economy.
Long-Run Average Total Cost Curve
A graphical representation showing how the average total cost of production varies with output level in the long run, when all inputs are variable.
Short Run
A period in economics during which at least one factor of production is fixed, limiting the ability to fully adjust to new market conditions.
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