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
We will see an incentive to innovate because in perfect competition all firms are price takers. This means that if they ...
Assumptions of perfect competition and how they affect incentives for research and development