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Why Don't We Divide the Economic Pie Evenly So That

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Why don't we divide the economic pie evenly so that each person receives the same income?


Definitions:

Average Variable Cost

The cost per unit of a good or service that varies with the level of output, excluding fixed costs.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output.

Total Cost

The complete cost of producing a certain amount of output, including both fixed and variable costs.

Quantity

The amount or number of a material or immaterial thing not usually estimated by spatial measurement.

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