--- In [EMAIL PROTECTED], J�rgen Ahting
<[EMAIL PROTECTED]> wrote:
>
> --- In [EMAIL PROTECTED], "jhrothjr"
<[EMAIL PROTECTED]>
> wrote:
> >
> /snip/
> >
> > The thing to understand about economics is that
> > if you have perfect competition, nobody makes
> > any profits. Profit is made by exploiting some
> > inequity in the market. If you understand this
> > one fact, you can cut through an amazing amount
> > of the BS that passes for "economics" these
> > days.
>
>
> You certainly talk about "excess" profits ?
Who said anything about "excess?" I certainly
didn't.
> In an ideal world profits correlate to the risks you take and the
> efficiency of your resource allocation.
Profit correlates to market inequities.
Risktaking behavior and execution efficiency
are both inequities.
The analysis is that if there are a number
of suppliers and consumers of the same commodity
product, the consumers will, of course, buy
from the least expensive supplier. The rest
of the suppliers will have to cut prices to
compete. This will continue until everyone
is functioning at a break-even level; there is
no profit (cost - sale price) for anyone.
John Roth
>
>
> J�rgen
>
> --------
> J�rgen Ahting - AMECO GmbH
>
> If you give me six lines written by the most honest man, I will find
> something in them to hang him. -- Cardinal Richelieu
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