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Socially Optimal
A state of resource allocation where social welfare, typically measured in terms of efficiency and equity, is maximized.
Marginal Cost
The increase in total cost that arises from producing one additional unit of output.
Efficient Level
The point at which the optimal quantity of a good or service is produced, maximizing the potential benefit and minimizing waste.
Fixed Costs
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.
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