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Marginal Cost
The additional cost incurred by producing one more unit of a product or service.
Alternative Goods
Products that serve as substitutes for each other; when the price of one increases, the demand for the other may increase.
Equilibrium Position
In the indifference curve model, the combination of two goods at which a consumer maximizes his or her utility (reaches the highest attainable indifference curve), given a limited amount to spend (a budget constraint).
Economic Resources
The land, labor, capital, and entrepreneurial ability that are used to produce goods and services; the factors of production.
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