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The Assumption Ceteris Paribus in a Model Means "Other Things

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The assumption ceteris paribus in a model means "other things equal."


Definitions:

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.

Output

The total quantity of goods or services produced by an individual, firm, or country within a certain period.

Diminishing Marginal Returns

A principle in economics that indicates a decreasing level of incremental output for each additional unit of input, after a certain point.

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