Explore BrainMass
Share

Explore BrainMass

    R & D Under Perfect Competition

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    If all the 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? What condition would encourage research and development in competitive industries?

    © BrainMass Inc. brainmass.com October 9, 2019, 11:37 pm ad1c9bdddf
    https://brainmass.com/economics/perfect-competition/r-d-under-perfect-competition-262188

    Solution Preview

    We will see an incentive to innovate because in perfect competition all firms are price takers. This means that if they ...

    Solution Summary

    Assumptions of perfect competition and how they affect incentives for research and development

    $2.19