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Monopolistic Competition
A market structure featuring many firms selling products that are similar but not identical, allowing for competition based on quality, price, and marketing.
Chronic Excess Capacity
A persistent situation in which industries or firms have more production capacity available than is being used, often leading to economic inefficiencies and reduced profit margins.
Minimum-Cost Output
The quantity of output at which the average total cost is lowest—the bottom of the U-shaped average total cost curve.
Perfectly Competitive
refers to a market structure where there are many buyers and sellers, all selling identical products, with no single market participant being able to influence the market price.
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