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Some Cost Considerations for Managers
* Three guidelines for estimating the marginal cost(MC): 1) Average variable cost should not be used as substitute for the marginal cost(MC).
2) A single item on firm's accounting ledger can have two components, only one of which involves marginal cost(MC).
3) All opportunity cost should be included in determining the marginal cost(MC).
Money: Broadly speaking, money is anything which can be used as a means of payment (for instance, to settle a debt). It includes bank deposits, actual currency, credit cards and li
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