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Allocative Efficiency
occurs when resources are distributed in a manner that results in the optimal combination of goods and services produced to match consumer preferences.
Productive Efficiency
The production of a good in the least costly way; occurs when production takes place at the output level at which per-unit production costs are minimized.
Marginal Cost
The charge of crafting one more unit of a product or service.
Product Markets
Markets where goods and services produced by businesses are sold to households.
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