According to the standard competitive model,industries with increasing returns would not be profitable.However,economist Paul Romer argues that many industries may be experiencing increasing returns because

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Romer argues that industries may be experiencing increasing returns if important inputs are nonrivalrous, meaning that one firm's use of the input does not limit another firm's use. In such cases, multiple firms can benefit from the same input without reducing each other's usage, leading to potential economies of scale and increasing returns to scale.

According to the Standard Competitive Model,industries with Increasing Returns Would