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What is fixed cost and variable cost?
By the Production Function to Cost Curves:
A fixed cost is a cost which does not depend onto the quantity of output generated. This is the cost of the fixed input.
A variable cost is a cost which depends onto the quantity of output generated. This is the cost of the variable input.
Introducing the Foreign Trade Sector Most economies in the real world are open economies. They engage in trade with other economies. Goods and services are exported and import
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