Examlex
Why does removing an overripe, mushy apple from a container of otherwise good apples help preserve the good apples?
Long-Run Cost Function
An economic model that describes how production costs change over time as all inputs can be varied by the producer.
Marginal Cost Function
A mathematical relationship describing how the cost of producing one additional unit of output varies as production scale changes.
Optimal Output
The level of production that maximizes a firm's profit, where marginal revenue equals marginal cost.
Producer Surplus
Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, reflecting gains from trade.
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