Examlex
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Purely Competitive
A market structure characterized by many small firms producing identical products, where no single firm can influence the market price.
Economic Profit
The difference between total revenue and total costs, including both explicit and implicit costs, representing the profit beyond the normal rate of return.
Average Variable Cost
Average variable cost is the total variable cost divided by the quantity of output produced, representing the variable cost per unit of output.
MR = MC Output
The output level where marginal revenue equals marginal cost, indicating the profit-maximizing level of production for a firm.
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