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Outline the key arguments for why some states are stronger than others. Use two of our case studies to illustrate how some of these arguments explain their relative strength.
Average Variable Cost
The total variable costs (costs that vary with production volume) divided by the number of units produced, which reflects the average cost per unit of varying expenses.
Total Variable Cost
The sum of all variable expenses related to the production of goods or services, which change with the level of output.
Average Variable Cost
The variable cost (costs that change with production volume) divided by the quantity of output produced.
Marginal Cost
The increase or decrease in the total cost incurred by producing one additional unit of a product or service.
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