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Economic Profits
Profits calculated by subtracting both explicit and implicit costs from total revenue, often indicating the degree of profitability beyond normal expectations.
Excess Capacity
A situation where a company can produce more goods than the market demands, often leading to inefficiencies.
Monopolistic Competition
A market structure featuring many firms selling products that are similar but not identical, allowing for competition based on quality, price, and marketing.
Chronic Excess Capacity
A persistent situation in which industries or firms have more production capacity available than is being used, often leading to economic inefficiencies and reduced profit margins.
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