(Solution Download) If the firm competes in a very competitive mature industry

If the firm competes in a very competitive, mature industry, what effect will competitive conditions have on residual income for the firm and others in the industry? Now suppose the firm holds a competitive advantage in an industry, but the advantage is not likely to be sustainable for more than a few years because of the potential for entry in the industry. As the firm?s competitive advantage diminishes, what effect will that have on that firm?s residual income?