If Global Markets Are Imperfect, a Disproportionate Share of Profits

question 68

True/False

If global markets are imperfect, a disproportionate share of profits is likely to end up with shareholders, rather than employees.

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Definitions:

Long-Run Equilibrium

A state where all factors of production are variable, leading to the optimal distribution of resources in the market.

Demand Curve

A chart that illustrates the link between a product's cost and the amount of the product consumers want to buy at those prices.

Cherry Industry

A sector of agriculture that focuses on the cultivation, harvest, and distribution of cherries.

Efficiently Allocated

A situation where resources are distributed in a manner that maximizes the overall benefit to society or an economy, with no way to improve anyone's condition without worsening someone else's.