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As discussed in Chapter 4, Tilly argues that states first developed in early modern Europe when rulers (lords, kings, and the like) . tried to eliminate or neutralize both internal and external rivals, to protect their own citizens (subjects) , and to raise enough revenue to be able to carry out these activities. A key part of Tilly's argument is that the principal goal of these rulers was to
Comparative Advantage
An economic theory that explains how and why it benefits countries to specialize in producing goods in which they have a lower opportunity cost and to trade with others.
Constant Returns to Scale
A situation in production where increasing all inputs by a certain factor results in output increasing by the same factor.
Competitive Equilibrium
A market state where supply equals demand, resulting in an efficient distribution of goods and services without excess.
Price Ceiling
A government-imposed limit on the price charged for a product, intended to protect consumers from high prices.
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