In a Long-Run Equilibrium, Both Perfectly Competitive Markets and Monopolistically

question 215

True/False

In a long-run equilibrium, both perfectly competitive markets and monopolistically competitive markets have price equal to average total cost.

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Definitions:

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold.

Net Profit Margin

A profitability ratio calculated by dividing net income by revenue, expressing how much profit a company makes for every dollar of sales.

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold (COGS), expressed as a percentage.

Net Profit Margin

Net profit margin is a financial ratio that shows what percentage of a company's revenues remain as net income after all expenses are deducted.