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If incremental users are newly formed companies or subunits,such as a new product line or a new sales territory,the _________________ method may enhance their chances for survival in the short run by assigning them a low allocation of the common costs.
Minimal Losses
The smallest amount of losses that can be incurred, typically used in the context of minimizing financial or operational losses.
Marginal Revenue
The increase in earnings resulting from the sale of one extra good or service.
Economic Profit
the difference between total revenue and total opportunity costs; a measure of profit beyond the normal return on investment.
Marginal Cost
The addition to total cost from producing one additional unit of a product.
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