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When Abigail was learning a complex new computer program, she found that she made fewer errors when she was working alone than when she was in the computer class. This difference in her performance can best be explained by the principle of
Marginal Cost
The supplementary cost associated with manufacturing one more unit of a good or service.
Decreasing Its Output
A strategy or condition where a firm reduces the quantity of goods or services it produces, often in response to lower demand or to increase prices.
Marginal Revenue
Marginal revenue is the additional income generated from selling one more unit of a good or service, critical for determining the optimal level of output for profit maximization.
Marginal Cost
The incremental cost of producing an additional unit of a good or service.
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