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In the long run, an increase in aggregate demand from a position of full employment leads to:
Target Cost
The estimated price for a product or service that is determined by subtracting a desired profit margin from the competitive market price.
Profit Margin
The ratio or percentage of profit to sales, reflecting the efficiency with which a company or business unit generates income relative to its revenue.
Competition-Based Method
A method of price setting based on the price offered by competitors.
Price-Setting Methods
Various strategies and techniques businesses use to determine the selling price of their goods or services.
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