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A Financial Innovation That Developed as a Result of Banks

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A financial innovation that developed as a result of banks avoidance of bank branching restrictions was


Definitions:

Average Variable Cost

The total variable costs of production divided by the quantity of output produced; it varies with production levels.

Average Fixed Cost

Fixed cost divided by the quantity of output

Perfectly Competitive

A market structure characterized by many sellers and buyers, homogeneous products, no barriers to entry or exit, and perfect information, leading to optimal allocation of resources.

Market Price

The present cost at which a service or asset is available for purchase or sale on the market.

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