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Economic Profit
The difference between total revenue and total costs, including both explicit and implicit costs, representing the financial gain in excess of the opportunity costs of resources used.
X-Inefficiency
The difference between efficient behavior of enterprises assumed or implied by economic theory and their observed behavior in practice, often due to a lack of competitive pressure.
Pure Competition
A market structure characterized by many small firms producing identical products, where no single firm has significant control over the market price.
Monopolistic Competition
A market structure characterized by many producers selling products that are similar but not identical, allowing for competition based on quality, price, and brand.
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