The Figure Given Below Shows Three Short Run Average Total

question 12

True/False

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-Economies of scale exist when the long-run average-total-cost curve is positively sloped.

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Definitions:

Intangibility

A characteristic of services that means they cannot be seen, tasted, felt, heard, or smelled before they are bought.

Subjective Criteria

Decision-making factors based on personal preferences, opinions, or judgments rather than on objective data.

Purchase Decision

The final stage in the buying process where a consumer chooses to buy a specific product or service after considering various alternatives.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period, serving as a comprehensive indicator of a country's economic performance.