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

---

Definitions:

Money

A medium of exchange, unit of account, and store of value, used to facilitate transactions and measure economic value.

Happiness

A mental or emotional state of well-being characterized by positive emotions ranging from contentment to intense joy.

Physiological Component

Aspects of psychological experiences that are tied to the functions and responses of the body, such as heart rate or hormone levels.

Perceptual Component

The aspect of perception involving the interpretation and organization of sensory information to understand the environment.