4 ms·
Is it really true that in a world of perfect competition profits would be competed away? It depends on what you mean by "perfect," but I always assumed there wo
by kem 10y ago
Is it really true that in a world of perfect competition profits would be competed away? It depends on what you mean by "perfect," but I always assumed there would still be differences in skills, access to certain resources, and whatnot, so that profits might be decreased, but not eliminated.
The point you're making, though, is why patents are so important to get right and not overextend. I'm personally opposed to them completely, although I respect arguments for limited patents.
- slavik81 10y ago'Perfect competition' is a technical term, like 'ideal gas'. https://en.wikipedia.org/wiki/Perfect_competition https://en.wikipedia.org/wiki/Perfect_competition
- whack 10y agoTo add on, my previous post was referring to "economic profits", which is different from nominal profits. A sublink from above clarifies this further. https://en.wikipedia.org/wiki/Perfect_competition#Normal_profit https://en.wikipedia.org/wiki/Perfect_competition#Normal_pro...
- Nomentatus 10y agoIt's probably worse than that. It's probably a "dollar auction." Worse than perfect competition, a species of prisoner's dilemma.