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The Schrödinger equation
Fixed Cost
Expenses that do not change in total regardless of the level of output or activity, such as rent, salaries, and insurance.
Variable Cost
Expenses that vary directly with the volume of output or business operations.
Marginal Cost
The financial outlay required to produce an additional unit of a product or service.
Average Total Cost
The total cost of production (fixed and variable costs combined) divided by the quantity of output produced, reflecting the cost per unit of output.
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