Perfectly competitive industries tend to produce low-priced, low-technology products.

Question

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Perfectly competitive industries are characterized by many small firms producing standardized products. Due to the high level of competition, firms have little to no market power to set prices above the market equilibrium, resulting in low prices for consumers. However, there is no inherent requirement for these products to be low-technology. In fact, some perfectly competitive industries can produce high-technology products, such as online advertising or air travel.

Perfectly Competitive Industries Tend to Produce Low-Priced, Low-Technology Products