The Figure Given Below Shows the Aggregate Demand and Supply

question 73

True/False

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

-If at the profit maximizing level of output, the AR curve lies below the ATC curve in the short run, the firm is earning positive economic profit.

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Definitions:

Business Firm

A company that produces goods and services for sale to individual consumers, other firms, or the government.

Capital Goods

Long-lasting goods used in the production of other goods or services, such as machinery, tools, and buildings.

Consumer Goods

Finished products consumed by individuals or households to satisfy their immediate wants or needs, such as food, clothing, and electronics.

Limited Partnerships

A form of partnership consisting of one or more general partners, who manage the business and assume legal debts and obligations, and one or more limited partners, who are liable only to the extent of their investments.