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Describe the effect of group purchasing organizations in the hospital supply chain.
Diminishing Marginal Returns
A principle stating that as additional units of a variable input are added to a fixed input, the additional output produced from each new unit will eventually decrease.
Normal Profit
The minimum level of profit needed for a company to remain competitive in the market, covering its opportunity costs.
Entrepreneur's Potential Earnings
The hypothetical income an entrepreneur could earn, considering the risks and opportunities associated with starting and running a business.
Annual Lease
A contract or agreement stipulating the rental terms of a property for one year, often specifying the rent amount, payment schedules, and other conditions.
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