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Total Fixed Costs (FTC)

The sum of all the fixed costs such as rent, loan payments and salaries.

Below is a diagram to show an example of a total fixed costs curve for an individual firm. As can be seen this curve is perfectly horizontal because these costs do not change regardless of how much output is produced and therefore this line will indefinitely continue until the firm either has a reduction or increase in the amount of fixed payments such as rent on a building.

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