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Inelastic Demand
Describes a situation where the demand for a product does not change significantly in response to a change in the product's price.
Barriers to Entry
Obstacles that make it difficult for new competitors to enter a market, such as high startup costs, strict regulations, or strong brand loyalty.
Lerner Indices
A measure of a firm's market power calculated by the difference between price and marginal cost relative to the price.
Marginal Cost
The additional cost incurred by producing one more unit of a product, reflecting the cost of the resources used in the production of that extra unit.
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