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Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.
Incremental Revenues
Additional revenue generated from a specific action or decision, comparing the difference in total revenue with and without the action.
Incremental Revenues
Additional income generated from a particular business decision or activity, beyond the existing baseline revenue.
Unavoidable Cost
A cost that cannot be eliminated and must be incurred regardless of the action taken.
Relevant Cost
Costs that are directly tied to a specific managerial decision and will change as a result of that decision, critical for effective cost management and decision-making processes.
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