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Whenever Margaret has personal problems, she confides intwo co-workers who listen very attentively and offer her emotional support. The amount of time that Margaret spends discussing her personal problems with co-workers has steadily increased. Positive reinforcement is occurring in this example.
Marginal Cost
The addition to total cost from producing one additional unit of a product.
Perfectly Competitive Firm
A perfectly competitive firm operates in a market where there are many buyers and sellers, the product is homogenous, and there is free entry and exit from the market.
Economic Profit
The gap in financial terms between total earnings and all financial burdens, considering both express and tacit costs.
Short Run
A period of time during which at least one of a firm's inputs is fixed, limiting the firm's ability to adjust to changes in demand or production costs.
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