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- # March 2 - Cost of Production
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- ## Fixed vs Variable Cost
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- - Fixed Costs always have to be payed
- - Yearly salary
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- - Variable cost changes
- - Hourly paycheck rate
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- - Total Cost -- fixed plus variable cost
- - Cost minimization -- the combination of spending that costs the least
- - Marginal cost -- cost of doing something again
- - marginal costs total minus output
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- ## Profit Maximizing
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- - Output that gives as much profit as possible
- - Marginal revenue -- additional revenue of another unit of output
- - When should a company go out of Business?
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