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Value-Added and Non-Value-Added Activities

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Essay

Value-added and non-value-added activities
Explain the distinction between value-added and non-value added activities.Provide an example of each.


Definitions:

Market Output

The total quantity of goods or services produced and offered for sale in a particular market.

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs or stringent regulations.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market at a lower cost than two or more firms, due to economies of scale.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

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