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Marginal Productivity Theory
An economic theory that suggests the value of a good or service is determined by the marginal productivity of the inputs used in its production.
Perfectly Competitive
A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can influence the market price.
Equilibrium Value
The stable value at which supply equals demand for a particular good, service, or financial instrument, leading to a balanced market condition.
Marginal Product
The additional output that results from using one more unit of a particular input, while holding other inputs constant.
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