If all assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development?

Consider two perfectly competitive industries, A and B, both operating in a state of long-run equilibrium and subject to constant returns to scale. Now let consumers' preferences change: more demand is directed to industry A and less to B. Give an explanation of what will happen (a) in the short run, and (b) in the long run. (Describe and explain the shifts that will occur in the relevant curves.) HTML Editor B IUA A I E E = E E X 三E D ¶ 1 12pt Paragrap

Suppose that the price of corn, a crop produced in a perfectly (or purely) competitive industry, increased 208% last year as demand for corn‑based ethanol fuel increased.   What do you expect to happen in the long run for the corn industry given this recent success?   A. The price per bushel of corn will continue to increase, yielding higher profits. Thus, more firms will enter the market indefinitely. B. Profits will become negative due to overfarming, which will result in the corn farming industry going under. C. Profits will be equal to zero. D. None of the above.   Suppose the firms in the market for bacon, also a perfectly (or purely) competitive industry, experienced losses last quarter due to people becoming increasingly concerned about how high-fat diets negatively impact health.   What do you expect to happen in the long run for the bacon industry?   A. Seeing this as an opportunity to monopolize a fledging industry, firms will enter the industry, shifting…

Many firms in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down? Think of recent examples.