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Average Product
The output per unit of a specific factor of production, calculated by dividing total production by the quantity of the employed factor.
Law of Diminishing Returns
An economic principle stating that if one factor of production is increased while other factors are held constant, the resulting increase in output will eventually decrease.
Fixed Input
Production factor that cannot be varied.
Technological Improvement
A process of innovation where new technologies or improvements to existing ones increase the efficiency or effectiveness of products, services, or processes.
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