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Draw a rectangular box with the origin and as opposite vertices and with its faces parallel to the coordinate planes. Find the length of the diagonal of the box.
Equilibrium Price
The price at which the quantity of a good or service demanded by consumers matches the quantity supplied by producers, resulting in market balance.
Producer Surplus
The difference between what producers are willing to accept for a good or service versus what they actually receive in the market.
Allocative Efficiency
A state of resource allocation where goods and services are distributed according to consumer preferences in a way that maximizes utility.
External Benefits
Advantages that result from a product or service's use that affect someone other than the direct consumer or producer, often justifying government intervention.
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