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Variable Costs
Variable costs are expenses that vary directly with the level of production or output, such as materials and labor used in the manufacturing process.
Fixed Costs
Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.
Long Run
The Long Run is a period in economics during which all factors of production and costs are variable, allowing for adjustment to changing market conditions.
Fixed Amount
A specific, unchanging quantity of something.
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