Firm is in industry which has very rapid rate of growth

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Suppose that a firm is in an industry which has a very rapid rate of growth (in sales and output), and is characterized by technological change and innovation. Firms attempt to maximize profits causing new firms to enter the industry attracted by profit potential. The result is that profits are competed away, leading to even greater innovation and change. Is there a limit to this continuous change? Will the structure of the market change? Explain.

Reference no: EM131388904

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