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An Example of a Step Variable-Cost Function Is the Cost

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An example of a step variable-cost function is the cost of material-handling labour when inputs are acquired in discrete quantities.


Definitions:

Long-Run Equilibrium

A state in which all factors of production and markets adjust fully to any changes, resulting in a stable economic environment without excess supply or demand.

Long-Run Equilibrium

A state in which all inputs and outputs in a market are fully adjusted and there is no tendency for change, often associated with perfect competition markets.

Marginal Revenue

The extra revenue obtained by selling an additional unit of a product or service.

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