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Marginal Cost
The cost of producing one additional unit of a good or service, an important concept in economics for determining the optimal level of production.
Average Total Cost
The total cost to produce a given quantity of output divided by the quantity of output produced; it includes all opportunity costs.
Diminishing Marginal Returns
Refers to a point in production where adding an additional factor of production results in a smaller increase in output.
Average Variable Costs
The total variable costs divided by the quantity of output produced, reflecting the average cost of producing each unit.
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