To Be Efficient, a Competitive Equilibrium Must Allocate Inputs Among

question 52

True/False

To be efficient, a competitive equilibrium must allocate inputs among firms so that no reallocation of inputs would result in a higher output of all goods.

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Definitions:

Years

Units of time representing a period of approximately 365 days or 12 months, commonly used to measure durations and intervals in financial contexts.

Real Rate of Return

The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects.

Dividends

Profits disbursed by a business to its equity shareholders, usually generated from the company's financial gains.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power.