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In the Long Run, Zero Economic Profit Exists in Monopolistic

question 122

True/False

In the long run, zero economic profit exists in monopolistic competition and perfect competition.


Definitions:

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

Contract Rate

The agreed-upon interest rate specified in a loan or bond contract.

Market Rate

The prevailing interest rate available in the marketplace or the typical price of a good or service in the open market.

Discount

A reduction applied to the regular price of goods or services, typically offered to prompt payment or to certain customers.

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