Explain What Happens When the Demand Curve Intersects with the Supply

question 88

Essay

Explain what happens when the demand curve intersects with the supply curve.

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Definitions:

Normal Cost

The standard or usual expense associated with manufacturing a product, including direct labor, direct materials, and manufacturing overhead under normal operating conditions.

Portable Computer

A computer designed to be easily moved from one place to another, including laptops, notebooks, and other mobile computing devices.

Outside Supplier

A third-party entity that provides goods or services to a company, which are not produced in-house.

Production Costs

The total expenses incurred in the manufacture of a product, including direct materials, direct labor, and manufacturing overhead.