The market for micro-computers (PCs) is fairly competitive, the products are somewhat homogeneous, and, over time, firms have entered looking to make profits on new configurations of the micro-computer. Over time, profits:
A) have risen dramatically.
B) have stayed about the same for most firms.
C) have become razor thin for many producers.
D) are not important since this industry is in the nonprofit sector.

Question

Quizplus · Accepted Answer

The fact that there are many firms in the market competing with homogeneous products suggests that profits have become razor thin for many producers.

The Market for Micro-Computers (PCs) Is Fairly Competitive, the Products