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Explain the possible costs associated with geographic diversification.
Market Share
The percentage of an industry's sales that a particular company controls.
Herfindahl-Hirschman Index
A measure of market concentration used to determine the level of competition within an industry, calculated by summing the squares of the market shares of all firms in the market.
Marginal Revenue
The additional income that is gained from selling one more unit of a good or service, crucial for businesses when deciding how much to produce.
Total Cost
The complete cost of production that includes both fixed and variable costs incurred in creating goods or services.
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