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Fixed Costs
Expenses that do not change in the short term regardless of the level of production or sales, such as rent and salaries.
Average Total Cost Curve
A graph that shows the per unit cost of production at various levels of output.
Short-Run
A time period in which at least one factor of production is fixed, limiting the ability of firms to adjust to changes in market conditions fully.
Marginal Cost Curve
A graphical representation that shows the change in total cost when an additional unit is produced; typically upward-sloping due to increasing marginal costs.
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