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Term Paper: Competitive Market | Term Paper Queen

Profit Labs, Inc. (FPL) makes returns of 37.5% on its assets while the competitors make a return of 10% on their assets. This evidences the fact that FPL is effectively producing and efficiently using its resources.

In the long-run, FPL may take a high market share compared to the competitors because of its efficient production. It should be noted that the industry is free for any investor to enter or exit, this means that the industry is highly competitive.

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