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Use Summation Notation
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Perfectly Competitive
Describes a market situation where firms sell identical products, there are no barriers to entry or exit, and no single buyer or seller can influence the market price.
Excess Profits
Profits that exceed what is considered normal or expected, often due to favorable market conditions or monopoly power.
Price Takers
Firms or individuals who accept the market price as given and have no power to influence that price due to their small size in the market.
Differentiate
To differentiate means to distinguish or make distinctions between two or more items, concepts, or categories based on characteristics or attributes.
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