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The Tendency for a System to Keep Itself in an Optimal

question 204

Multiple Choice

The tendency for a system to keep itself in an optimal state is termed:


Definitions:

Marginal Revenue

The increase in income a business achieves through the sale of one extra unit of a product or service.

Marginal Cost

The extra charge involved in producing an additional unit of a product or service.

Average Total Cost

The total cost divided by the quantity of output produced, reflecting the average cost per unit of output.

Profit

The financial gain made in a transaction, calculated as the difference between the revenue received and the costs incurred.

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