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In Building Models,economists Often Assume That Opportunity Costs Don't Matter

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In building models,economists often assume that opportunity costs don't matter.


Definitions:

Product Volume

The quantity of units of a particular product sold or produced.

Pure Competition

A market structure characterized by a large number of small firms selling identical products, with no single entity able to influence the market price.

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Market

An area or arena in which commercial dealings are conducted.

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