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Tax Per Unit
A tax that is levied on a product based on the amount of the product sold, not on its value.
Consumer Surplus
The incongruity between what consumers are willing to expend on a good or service and what they truly expend.
Producer Surplus
The difference between what producers are willing to accept for a good or service and the actual amount they receive.
Opportunity Cost
Opportunity cost represents the value of the best alternative that must be forgone as a result of choosing another option.
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