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Explain the two major perspectives on the causes of poverty. What implications do these perspectives have on preferred policy options?
Production Capacity
The maximum output that an organization can produce with the available resources in a given period.
Operating Loss
The amount by which the operating expenses of a business exceed its gross profits.
Fixed Costs
Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance.
Materials Markup
The extra percentage added to the cost price of goods to cover overhead and profit when selling goods.
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