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Spillover Cost
A cost incurred by someone who is not a direct participant in a transaction, often referring to negative externalities resulting from economic activities.
Allocative Efficiency
occurs when resources are distributed in a manner that results in the optimal combination of goods and services produced to match consumer preferences.
Productive Efficiency
The production of a good in the least costly way; occurs when production takes place at the output level at which per-unit production costs are minimized.
Marginal Cost
The charge of crafting one more unit of a product or service.
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