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The personal computer operating systems industry can be best modeled using the model of
Marginal Costs
The incremental cost associated with the production of one more unit of a service or product.
ATC
Average Total Cost, the sum of all production costs divided by the quantity of output produced, representing the per-unit cost of production.
AVC
Average Variable Cost, which is the total variable costs of production divided by the quantity of output produced.
Marginal Cost
The increase in total cost that arises from producing an additional unit of a good or service.
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