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What Is the Main Disadvantage of Direct Investment

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What is the main disadvantage of direct investment?


Definitions:

Market Quantity

The total amount of a good or service supplied and purchased in a market at a given price.

Fixed Costs

Costs that do not vary with the quantity of output produced, such as rent or salaries.

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs, representing excess earnings over the opportunity cost of capital.

MR Curve

The marginal revenue curve, which shows how the revenue from selling one more unit of a good or service changes as the quantity sold changes.

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