It deals with opportunity costs. Opportunity costs are not real costs, but rather the things that you had to give up in order to obtain something else. What you didn't obtain is considered to be an opportunity cost. A production possibility curve deals with this.
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Heat, erosion, air, and water.
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<span>Economies of Scale. This means as firms produce more their average costs fall. ...Brand Loyaly. Some firms have high degrees of brand loyalty. ...Geographical Barriers. Some Industries are specific to a certain area. ...<span>Patents.
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