The Long-Run Competitive Equilibrium Results in Efficient Allocation of Capital

question 121

True/False

The long-run competitive equilibrium results in efficient allocation of capital.

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Definitions:

Direct Ownership

A form of business ownership where individuals or entities have complete control over their investments or assets without intermediaries.

Foreign Market

Refers to markets outside the company's home country where it can sell or market its products or services.

Exporting

The process of exporting products or services to a foreign country for the purpose of selling them.

Licensing

An agreement in which a company allows another entity to produce its product in exchange for a predetermined fee.