Which of the following is not a valid statement? Multiple Choice Competitive ceiling is the rate of return that would be earned in the economist's "perfectly competitive" industry. Companies that consistently earn rates of return above the floor are said to have a competitive advantage. Competition in an industry continually works to drive down the rate of return on assets toward the competitive floor. Rates of return that are higher than the industry floor stimulate more competition as existing companies innovate and expand their market reach or as new companies enter the industry