-fixed costs-a cost that does not change no matter how much is produced
EX) people's salary, mortgage, car payments
-variable cost-cost that fluctuates or changes depending upon how much is produced
EX) electricity bill, water bill
-marginal cost-cost of producing 1 more additional unit of a good
**Formulas
TC=TFC+TVC
AFC=TFC/Q (QxATC=TC)
AVC=TVC/Q
ATC=TC/Q or ATC=AFC+AVC
MC=new TC-old TC
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