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Firms Should Consider Developing Custom Software Only If

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Firms should consider developing custom software only if


Definitions:

Technological Innovation

The development and application of new ideas, devices, or methods in technology which significantly improve goods, services, or processes.

Cost Curves

Graphical representations of how the cost of production varies with changes in the quantity of output produced, including average and marginal costs.

Average Fixed Cost

Fixed cost divided by the level of output.

Producer Surplus

The gap between the price that suppliers are prepared to take for a product or service and the real price they get.

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