Examlex
When you prepare your speaking notecards:
Long Run
A period in which all factors of production and costs are variable, allowing firms to adjust to market changes fully.
Marginal Cost
The expense associated with manufacturing an extra single unit of a product or service.
Profit Maximizing
The process of adjusting production and sale strategies to achieve the highest possible profits.
Economic Profits
Profits calculated by subtracting both explicit and implicit costs from total revenues; represents the extra amount over the payment needed to keep a resource in its current use.
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