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Excess Capacity
The situation in which a firm or economy can produce more goods than are currently being produced, due to underused resources.
Diseconomies of Scale
Increases in cost per unit when output increases, often due to inefficiencies that arise with too large an operation.
Monopolistic Competition
A market structure characterized by many firms selling differentiated products with no perfect substitutes, allowing for some degree of market power.
Product Variety
Refers to the assortment of different goods and services that a company offers to meet consumer demands.
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