Examlex
What is evidence-based management (EBM)?
Average Fixed Cost (AFC)
A firm’s total fixed cost divided by output (the quantity of product produced).
Marginal Cost (MC)
The extra (additional) cost of producing 1 more unit of output; equal to the change in total cost divided by the change in output (and, in the short run, to the change in total variable cost divided by the change in output).
Total Cost
The sum of all costs incurred by a business in the production of goods or services, including both fixed and variable costs.
Marginal Cost
The additional cost incurred from producing one more unit of a good or service.
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