Examlex
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Short Run
A period of time during which at least one of a firm's inputs is fixed, limiting the firm's ability to adjust to changes in demand or production costs.
Perfectly Competitive Firm
A firm operating in a market where there are many buyers and sellers, with none being able to influence the market price of the product.
Marginal Cost
The charges incurred from the production of an extra unit of a product or service.
Short-run Profits
Profits earned by a firm when it operates under short-term constraints, where at least one input is fixed.
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