In Some Industries,competitive Dynamics Eventually Drive Long-Run Projections of the Future

question 53

Multiple Choice

In some industries,competitive dynamics eventually drive long-run projections of the future returns earned by the firm to an equilibrium level equal to the long-run expected cost of equity capital in the firm.At that point,a firm can be expected to earn ____________ residual income in the future.

• A) increasing
• B) zero.
• C) decreasing
• D) There is not enough information to answer this question

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refer to the skills or abilities that an individual can achieve or is expected to achieve at various stages of development.