The Long-Run Competitive Equilibrium Results in Efficient Allocation of Capital

question 121

True/False

The long-run competitive equilibrium results in efficient allocation of capital.

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Definitions:

Required Rate

A term often used to signify the minimum return or yield that investors expect from an investment, considering the risk involved.

Average Operating Assets

A metric representing the average value of the assets involved in the operating activities of a business over a period.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributing to covering fixed costs and generating profit.