If Each Firm Is Initially Earning Positive Profits in a Perfectly

question 94

True/False

If each firm is initially earning positive profits in a perfectly competitive industry, then there will be entry of new firms, price will fall, and the output of each firm will fall in the long- run equilibrium.

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Definitions:

FinTech Firms

Companies that innovate and provide technological solutions for the finance sector, often disrupting traditional banking services and methods.

Process Technology Innovation

The introduction of new or significantly improved technologies or methods in the production process to enhance efficiency, quality, or environmental performance.

Negotiations

The process of discussing and reaching a mutual agreement between two or more parties with differing needs and preferences.

Psychological Dimension

An aspect concerning the mental and emotional factors influencing human behavior.