Examlex
Identify the following terms.
-Cannae and Zama
Total Fixed Costs
The total of all expenses that do not change with the amount of production or output.
Total Variable Costs
The sum of all costs that change with the level of output, such as materials and labor directly involved in production.
Average Fixed Cost
The total fixed costs of production divided by the quantity of output produced.
Marginal Cost
The extra cost incurred from the production of an additional unit, emphasizing its role in decision-making processes.