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Average Variable Cost
The sum of all costs that vary with output levels, divided by the total number of units produced.
Marginal Cost
The increase or decrease in total production cost when producing one additional unit of a good.
Average Cost
The total cost of production divided by the quantity of output produced, also known as the cost per unit.
Marginal Cost
The escalation in aggregate cost that comes from generating one more unit of a product or service.
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