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Market Equilibrium
The condition where the quantity of a good or service demanded equals the quantity supplied, resulting in no incentive for price to change.
Output Level
The quantity of goods or services produced by a business within a given period.
Allocative Efficiency
A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it.
Long-Run
A period of time in economics during which all factors of production and costs are variable, allowing for complete adjustment to changes.
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