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________ Corresponds to Lower Output and ________ Corresponds to Higher

question 167

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________ corresponds to lower output and ________ corresponds to higher output.


Definitions:

Profits

The financial gain obtained when the revenue from business activities exceeds the expenses, taxes, and costs associated with maintaining the business.

Marginal Cost

The investment needed to manufacture an extra unit of a product or service.

Marginal Revenue

Enhanced revenue from the sale of an incremental unit of a product or service.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

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