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The essence of Modigliani and Miller's irrelevance theory is that
Financial Advantage
The benefit gained in a financial context that puts an individual, company, or country in a better position than others.
Fixed Production Costs
Expenses that do not change with the level of production, such as rent, salaries, and equipment leasing.
Unit Product Cost
The calculated cost of producing a single unit of product, including direct materials, labor, and overhead costs.
Average Cost
The cost calculated by dividing the total cost of goods available for sale by the total units available for sale.
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