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Explain the Concept of "Friction of Distance" and Give an Example

question 19

Essay

Explain the concept of "friction of distance" and give an example of the friction of distance from everyday life.


Definitions:

Marginal Cost

The additional expenditure required to produce one more unit of a product or service.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies with changes in the quantity of goods or services sold.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing to buy.

MR (Marginal Revenue)

The increase in revenue that results from selling one additional unit of a product or service.

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