The Figure Given Below Shows the Aggregate Demand and Supply

question 23

True/False

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-If the market price falls below the average-variable-cost, the firm will suspend production.

---

Definitions:

Carrying Costs

The aggregate amount spent on inventory upkeep, which covers costs related to storage, insurance premiums, and tax payments.

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.

Interest Costs

The expenses incurred by borrowing money or the costs associated with the use of credit.