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Identify and briefly explain any three of the factors that influence the bargaining strength and leverage of suppliers.
Economic Loss
This occurs when total costs exceed total revenue, leading to a negative profit situation.
Marginal Cost
The amount spent to produce an extra unit of a product or service.
Average Total Cost
The total cost divided by the quantity produced, representing the per-unit production cost.
Average Variable Cost
The total variable costs of production divided by the quantity of output produced.
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