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What are the main factors that help influence whether decision making will be centralized or decentralized?
MR = MC Rule
An economic principle that states a firm will maximize its profit when its marginal revenue equals its marginal cost.
Additional Unit
Refers to the next unit of a good or service to be produced or consumed, often discussed in the context of marginal analyses, such as marginal cost or marginal utility.
MR = MC Rule
The MR=MC rule states that profit maximization occurs when a firm produces at a level where marginal revenue equals marginal cost.
Price Taker
A market participant that accepts market prices as given and cannot influence those prices.
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