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A company evaluates whether to develop two separate lines of sunscreen lotions,one for men and one for women.
Average Variable Cost
The cost per unit of output that varies with the level of production, typically including labor and material costs.
Marginal Cost
The cost added by producing one additional unit of a product or service.
Total Fixed Cost
The total of all expenses that do not vary with the amount of production or output.
Average Total Cost
The cost per unit of output, calculated by dividing the total production cost by the quantity of units produced.
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