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What are the three essential characteristics of locational community?
Average-fixed-cost Curve
A graphical representation showing how the average fixed cost of production decreases as the quantity of output increases.
Implicit Costs
The opportunity costs of using resources owned by the business for its operations instead of allocating them to their best alternative use.
Interest Rate
The expense associated with taking out a loan or the earnings from investments, usually shown as a percent of the total amount invested or borrowed.
Specialization
The process of focusing effort and resources on a limited number of activities to gain efficiency or expertise.
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