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MARGINAL UTILITY-PRICE RATIO: The ratio of the marginal utility obtained from consuming a good to the price of the good. This ratio is particular important in determining consumer equilibrium, which is reached when the marginal utility-price ratios are the same for all goods.

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PERFECT COMPETITION, PROFIT MAXIMIZATION

A perfectly competitive firm is presumed to produce the quantity of output that maximizes economic profit--the difference between total revenue and total cost. This production decision can be analyzed directly with economic profit, by identifying the greatest difference between total revenue and total cost, or by the equality between marginal revenue and marginal cost.

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Today, you are likely to spend a great deal of time looking for a downtown retail store hoping to buy either looseleaf notebook paper or a three-hole paper punch. Be on the lookout for malfunctioning pocket calculators.
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The penny is the only coin minted by the U.S. government in which the "face" on the head looks to the right. All others face left.
"The only profit center is the customer. "

-- Peter Drucker, management consultant

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