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A bank holding company has a banking affiliate and a securities affiliate. If the securities affiliate fails, it could cause the bank to also fail because
AVC
Stands for Average Variable Cost, which is the per-unit cost of production excluding fixed costs, changing with the level of output.
Output
The total amount of goods or services produced by a person, machine, or industry.
Total Fixed Cost
The sum of all expenses that remain constant regardless of the level of production or output in a business operation.
Average Fixed Cost
the total fixed costs divided by the number of units produced, illustrating how fixed costs dilute with increased production.
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