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Kathy frequently makes faces at her classmates.Instead of punishing her for making faces,the teacher has the students totally ignore Kathy.This example illustrates the teacher's attempt at
Marginal Costs
Relates to the additional expenses faced when a business decides to increase its output or product quantity by one more unit.
Average Total Cost
The total cost of production divided by the quantity produced, representing the per-unit cost of production.
Price-Taker Industry
A sector in which businesses must accept the prevailing prices in the market as they have no influence over setting them.
Marginal Costs
The additional cost incurred by producing one more unit of a product or service.
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