Provided That There Are No External Benefits or Costs, in the Long

question 236

True/False

Provided that there are no external benefits or costs, in the long run, perfect competition will result in an efficient allocation of resources because P = MC.

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Definitions:

Bond Contract

A legal document that outlines the terms of a bond issuance, including the interest rate, maturity date, and issuer's obligations.

Dividend Restriction Clause

A provision in a contract that limits or restricts the ability of a company to pay dividends to its shareholders.

Sinking Fund Clause

A provision in a bond contract that requires the issuer to periodically set aside funds to retire a portion of the debt before it matures.

Inflation-Indexed Treasury Securities

Government bonds that are adjusted for inflation to protect investors from the decline in purchasing power.