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A perfect market, which is a stupid assumption, can indeed make profit. You are assuming that an economy is a zero sum game but it is not. Transactions are made
by jostmey 11y ago
A perfect market, which is a stupid assumption, can indeed make profit. You are assuming that an economy is a zero sum game but it is not. Transactions are made because both parties come out ahead.
- netheril96 11y agoEconomy is a zero sum game in a perfect market. It is not a zero sum game because markets are not perfect.
- eru 11y agoYou don't believe different rates of economic growth are possible?
- hawkice 11y agoThis assumes (quite wrongly) that the same goods have the same utility across the population. It's similar to saying, in a perfectly efficient economy, there would be no trades. There are, because there is a benefit to that trade -- and there is no reason for that benefit to be evenly distributed.
- lmm 11y agoIn a perfect market middlemen (i.e. traders) would make no profit - participants already have perfect information and there are enough buyers and sellers for all goods, so people trade directly and would get no value from intermediaries.