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What important guideline should you keep in mind when choosing independent variables for multiple regression?
Economic Profits
Total revenues minus total costs, where total costs include both explicit and implicit costs.
Competitive Market
A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are similar enough to be interchangeable.
Long Run
A period of time in economics during which all inputs and conditions can be varied, allowing for full adjustment to changes.
Perfectly Competitive Market
A theoretical market structure characterized by an infinite number of buyers and sellers, where no single entity has the power to influence the market price.
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