3 ms·
If by 'charity' you mean the only efficient company on Wall Street. If things are properly efficient profit will be near 0. Large profits mean that competition
by Glyptodon 13y ago
If by 'charity' you mean the only efficient company on Wall Street. If things are properly efficient profit will be near 0. Large profits mean that competition has failed.
- SamReidHughes 13y agoYour comment makes no sense. If their competition is pushing their profits to 0, then the competition's efficient too.
- rayiner 13y agoWhat he probably means to say that the market is efficient (which the retail sector is). Margins are razor-thin in the retail business because competition pushes profits to zero.
- akgoel 13y agoThis sort of econ101 argument that MR=MC in a fully competitive market forgets that such a simple model also must allow for consumer surplus to equal supplier surplus, and that they must necessarily also be zero. In that case, all transactions have zero net benefit for all parties involved, and you might as well not have any transactions.