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What Are the Primary Sources of Economic Growth? Why Are

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What are the primary sources of economic growth? Why are our real incomes and living standards today so much higher than those of our great grandparents 50 or 100 years ago? Why is the income per person so much higher in some countries than others?


Definitions:

Monopolistic Competition

Monopolistic competition describes a market structure where numerous firms sell products that are similar but not identical, allowing for competition based on quality, brand, and price.

Long-Run Equilibrium

A state in a market where all factors of production and costs are variable, leading to no economic profit for firms in perfect competition.

Monopolistically Competitive

A market structure characterized by many firms offering products that are similar but not identical, allowing for some degree of market power.

Average Total Cost

Total cost divided by quantity of output produced. Also referred to as average cost.

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