Describe the Three Different Techniques Used by Interest Groups That

question 4

Essay

Describe the three different techniques used by interest groups that you think are the most important. Then explain why the techniques you have chosen are important.

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Definitions:

Economic Profit

The profit a company makes after deducting both explicit (direct payments) and implicit (opportunity) costs.

Normal Profit

Normal profit is the minimum level of profit needed for a company to remain competitive in the market, equivalent to the opportunity cost of capital.

Purely Competitive Market

A market framework where numerous buyers and sellers exist, there's unrestricted access and departure, and the product is uniform, which results in participants accepting the market price as given.