A firm that manufactures and sells electronics is thinking about acquiring a firm that has made a good profit specializing in the manufacturing HDMI cables. In the meeting to discuss the acquisition, an associate makes the following statement."These HDMI cables are essentially a commodity and there are any number of firms that can enter into this business, a classic competitive industry. As such, it's not possible to earn long-runeconomicprofits and so we shouldn't base our purchase price on the profits that the firm is now making"

Does the associate have a point? Explain.