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Long-Run Equilibrium
A state in which supply equals demand, all firms are maximizing profits, and there is no incentive for market entry or exit.
Efficient Output
The level of production at which a firm or economy can produce the maximum amount of goods at the lowest possible cost.
Efficient Output
The level of production where a firm or economy can produce the maximum amount of goods and services with the least amount of inputs.
Perfect Competition
A market structure characterized by a large number of buyers and sellers, homogeneous products, and free entry and exit, leading to price determination by supply and demand.
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