Because the Equilibrium Position of a Purely Competitive Seller Entails

question 71

True/False

Because the equilibrium position of a purely competitive seller entails an equality of price and marginal costs, competition produces an efficient allocation of economic resources.

---

Definitions:

Expected Dividend

The forecasted payment of dividends to shareholders based on the company's past dividends and future earnings projections.

Per Share

A term used to describe a financial ratio or statistic as it relates to one individual share of stock.

Annual Dividends

The total amount of dividend payments a company pays out to its shareholders in one year.

Desired Rate of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the asset's risk level.