> In elementary macroeconomics you learn it is impossible to make a profit Business, however, is all about making a profit, because even if discount personal ga

> In elementary macroeconomics you learn it is impossible to make a profit Business, however, is all about making a profit, because even if discount personal gain, nothing can be sustainable unless it can get paid for and you need compensation for the investment you make and the risks you take. You're confusing two different definitions of profit. Economic profit includes opportunity cost (which includes the "compensation for the investment you make and the risks you take" that you're talking about). If the economic profit is zero, then everyone was compensated appropriately for all investments, risks, etc. Put another way, if the economic profit is zero, there is no better way you could have spent your money or your time (by definition, not by assumption). Accounting profit is what businesses deal with on a day-to-day basis. If the economic profit is zero, the accounting profit is positive. > yet, for business to exist competition must be imperfect. It is true in practice that competition is usually imperfect, but it's not true that this necessarily must be the case in order for businesses to exist.