Competition in an Industry Tends to Drive Rates of Return

question 5

True/False

Competition in an industry tends to drive rates of return on invested capital up towards the level of "perfect competition."

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale to potential buyers in a marketplace.

Input Price

The cost associated with purchasing the raw materials, labor, and other resources required to produce goods and services.

Quantity Supplied

The amount of a good that producers are willing and able to sell at a certain price over a specified period of time.

Supply

The total amount of a good or service that producers are willing and able to sell at a given price over a specific time period.