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What are proximal and distal goals? How are they related? Please provide examples of each.
Average Total Cost
The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.
Profit
The financial gain realized when the amount of revenue gained exceeds the expenses, costs, and taxes needed to sustain the activity.
Profit-Maximizing
A strategy or approach aimed at achieving the highest possible profit from business operations.
Fixed Cost
Costs that do not change with the level of output produced, such as rent, salaries, and insurance expenses.
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