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Output condition

The profit-maximizing output condition for producers equates the relative marginal cost of any two goods to the relative selling price of those goods; i.e.

One may also deduce the ratio of marginal costs as the slope of the production-possibility frontier, which would give the rate at which society can transform one good into another.

Macroeconomics

Relation to income

When a particular quantity of output is produced, an identical

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