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Fixed Costs
Costs that remain consistent regardless of production or sales volume, including rent, salaries, and insurance fees.
Variable Costs
Expenses that change in proportion to the activity or production level of a business.
Total Fixed Costs
The sum total of costs that are unaffected by changes in production levels or output.
Short-Run
A phase where production can be adjusted only by varying the amounts of variable inputs, with fixed inputs remaining constant.
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