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To allow room for concessions, the expectations expressed in the negotiating team's opening position should be:
Average Cost
The total cost of production divided by the number of units produced, representing the cost per unit of output.
Production Function
An equation that specifies the output that can be produced with different combinations of inputs or factors of production.
Total Cost
The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.
Amounts of Factors
The quantities of inputs or resources (such as labor, capital, and materials) used in the production of goods or services.
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