Answered: If all assumptions of perfect…

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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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?

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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