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Economic Efficiency
A state where resources are allocated in a manner that maximizes the production of goods and services without wasting any resources.
Economies of Scale
Financial advantages gained by firms due to their operational size, where a greater volume of production usually correlates with a lower cost for each output unit.
Per-unit Costs
The cost incurred for producing or acquiring a single unit of a product or service.
Natural Monopoly
A market condition where a single firm can supply a good or service to an entire market at a lower cost than two or more firms due to economies of scale.
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