The ________ Is the Act of Doing Nothing and Losing

question 86

Short Answer

The ________ is the act of doing nothing and losing orders from any demand that exceeds capacity, or incurs costs because capacity is too large.

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Definitions:

Externalities

Financial consequences for unrelated third parties, which can manifest as either positive or negative effects.

Perfectly Competitive

Describes a market structure where many firms sell identical products, there are no barriers to entry, and no single buyer or seller can influence the market price.

Allocate Resources

The process of distributing available resources, such as labor, capital, and land, among various uses to fulfill societal needs and wants.

Consumer Surplus

The deviation between the monetary amount consumers are willing to pay for a good or service and the monetary amount they actually pay.