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The main lesson Brym and Lie draw from the story of baby Brenda is that:
Average Variable Cost
The per unit cost of variable inputs divided by the total quantity of output produced, reflecting the variable cost of production.
Marginal Revenue
The additional income generated by increasing product sales by one unit.
Marginal Cost
The expense associated with manufacturing an extra unit of a product or service.
Economic Activity
Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.
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