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What is the correct order of the policy decision-making process?
Marginal Cost
Incremental cost incurred when one more unit of a product or service is produced.
Total Variable Cost
The sum of expenses that change in proportion to the activity or volume of production.
Average Variable Cost
The total variable costs divided by the quantity of output produced; it fluctuates with changes in output.
Marginal Cost
The increase or decrease in the total cost that arises from producing one additional unit of a good or service.
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