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Low-cost Producer
A manufacturer or service provider with a competitive advantage allowing them to offer goods or services at a lower price than competitors, often due to operational efficiencies.
Consumer Surplus
The variance between the aggregate amount consumers can and will pay for a good or service versus the amount they actually spend on it.
Producer Surplus
is the difference between what producers are willing to accept for a good or service versus what they actually receive.
Equilibrium Price
The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market.
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