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Why Is the Demand Curve Horizontal for a Perfectly Competitive

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Why is the demand curve horizontal for a perfectly competitive firm?


Definitions:

Depreciation

The process by which capital assets decrease in value over time due to use, wear and tear, or becoming outdated.

Gross National Product

A measure of a nation's total economic output, including the value of all goods and services produced by its citizens, regardless of where they are located.

Depreciation

A reduction in the value of an asset over time, due to wear and tear or obsolescence.

Intermediate Goods

Goods that are used as inputs in the production of final goods, not intended for final consumption.

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