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Two technicians are discussing turbocharger operation. Technician A says that turbochargers are used on diesel engines to improve their power output while decreasing engine size and displacement. Technician B says that turbochargers enhance engine efficiency. Who is right?
Contractual Obligation
A legal requirement that a party must adhere to as stipulated in a contract, enforceable by law.
Money Expenditures
The total amount of money spent by individuals, firms, or governments on goods and services within a specific period.
Implicit Costs
The opportunity costs that arise from using resources that could have been employed in an alternative use, not directly paid in a financial form.
Normal Profit
The minimum profit necessary for a company to remain in business, equal to the opportunity cost of capital and entrepreneurial effort not invested elsewhere.
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