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Mention some applications of real options.
Lemonade Stand
A small business venture, often used as an example for basic business principles, where lemonade is sold, typically by younger entrepreneurs.
Fixed Cost
Expenses that do not vary with the level of output or sales, such as rent, salaries, or insurance premiums.
Variable Cost
Expenses that vary in proportion to the volume of goods or services produced in a business.
Opportunity Cost
The forfeiture of potential benefits from other options by selecting a specific one.
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