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There are two types of swaptions - a payer swaption and a receiver swaption. Describe each of these two types of swaptions.
Total Fixed Costs
The sum of all costs that remain constant regardless of the level of production or sales, such as rent, salaries, or loan payments.
Profit-Maximizing Output
The level of production at which a firm achieves the maximum possible profit, where marginal cost equals marginal revenue.
Marginal Revenue
The additional revenue generated from selling one more unit of a good or service.
Marginal Costs
The rise in overall expenses resulting from the production of an additional unit.
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