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Fixed Costs
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.
Marginal Costs
The additional cost incurred by producing one more unit of a good or service.
Average Costs
Total costs (fixed and variable) divided by the total quantity of output produced, representing the cost per unit of production on average.
Variable Costs
Costs that change in proportion to the good or service that a business produces.
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