Examlex
Which of the following terms belong together?
Diseconomies of Scale
The phenomenon where production costs increase as a firm or industry grows, leading to reduced efficiency and higher per-unit costs.
Law of Diminishing Returns
The principle that adding more of one factor of production, while keeping others constant, will eventually yield lower per-unit returns.
Economic Profit
The surplus remaining after deducting both explicit and implicit costs from total revenues, emphasizing a firm's financial performance beyond just its accounting profit.
Accounting Profit
Accounting profit is the monetary gain calculated by subtracting total explicit costs from total revenue.
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