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The Formation of a Customs Union Generates Static Effects for Members,but

question 22

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The formation of a customs union generates static effects for members,but not dynamic effects.


Definitions:

Marginal Revenue

The additional income received from selling one more unit of a good or service.

Selling Unit

A specific quantity or configuration of a product that is made available for sale to consumers.

Marginal Benefit

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Marginal Cost

The price associated with manufacturing an additional unit of a product or service.

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