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TER Exactly. If the deli doesn't make any sandwiches, they still have to pay their rent of $2,600. Economists have a term for a cost
TER Exactly. If the deli doesn't make any sandwiches, they still have to pay their rent of $2,600. Economists have a term for a cost that doesn't depend on how much a firm produces--in this case, costs the deli pays regardless of how many sandwiches it makes. What do economists call this kind of cost? variable cost sunk cost fixed cost
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