The Figure Given Below Shows the Aggregate Demand and Supply

question 19

True/False

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

-Under long-run equilibrium in perfect competition, each firm operates at the minimum point of its average-variable-cost curve.

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Definitions:

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be positive or negative.

Positive Profits

Financial gains experienced by a firm when its total revenues exceed its total costs.

Brand Names

Brand names are names given to a product or service by a company to differentiate it from competitors, signifying reputation and quality.

Less Developed Country

A country characterized by low levels of economic development, often measured by GDP per capita, industrialization, and standard of living.