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?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section: Chapter Questions

Problem 11QP

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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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