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You and your friends are having a sleepover.One of the friends falls asleep and is snoring.The rest of you are talking loudly without waking her,but when you begin to make cookies,the smell jolts her from sleep immediately.How can this be?
Short-run Economic Profits
Profits earned by a firm in the short run, where not all inputs can be varied and some fixed costs are still incurred.
Competitive Industries
Sectors of the economy where businesses actively compete with each other to offer goods or services to consumers, often characterized by low barriers to entry and a high level of innovation.
Allocative Efficiency
A state of resource allocation where goods and services are distributed according to consumer preferences, maximizing overall societal welfare.
Productive Efficiency
A situation where a firm or economy produces output at the lowest possible cost, using all its resources efficiently.
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