Examlex
What is cost-oriented pricing?
Marginal Cost
The cost change associated with making an additional unit of a product, emphasizing the incremental expense in production activities.
Total Costs
The complete cost of production that includes both fixed and variable costs.
Average Total Costs
The total cost of production divided by the total number of units produced, representing the average cost per unit of output.
Fixed Costs
Expenses that do not vary with the level of output or sales, such as rent, salaries, and insurance.
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