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"Perfect competition" can only exist in the long term. In the short term, there are start up costs and new improvements. With perfect competition, if you are
by seanflyon 12y ago
"Perfect competition" can only exist in the long term. In the short term, there are start up costs and new improvements. With perfect competition, if you are making a profit someone will come along and undercut you, but that takes time, capital, skill, and luck.
- jp555 12y agoExactly. In the short term you have some kind of monopoly. Maybe you have the only ice cream shop with a licence to sell booze, or a new supply restricted piece of equipment, or exclusive supply of a rare ingredient, famous partner, etc. product differentiation is at its best, a monopoly. All lasting businesses are built on monopolies.