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If a Firm Produces Its Mix of Output at the Lowest

question 53

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If a firm produces its mix of output at the lowest possible cost,it is said to achieve production efficiency.


Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Deflation

A sustained decrease in the price level.

Growth

An increase in the economic capacity of a country to produce goods and services, compared from one period of time to another.

Stock Variable

A quantity measured at one specific time, contrasting with flow variables, which are measured over a period of time.

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