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Support groups are typically organized around particular
Average Variable Cost
Variable costs, which fluctuate based on production volume, divided by the total number of units produced.
Average Total Cost
The total cost of production (fixed plus variable costs) divided by the total quantity of output produced, representing the per-unit cost of production.
Average Fixed Cost
The fixed costs of production divided by the quantity of output produced. This decreases as production increases.
Total Variable Costs
Expenses that change in proportion to the activity of a business such as materials, labor, and utilities, which vary with the level of output.
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