Competition: Difference between revisions
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Competition | As Competition approaches perfection, [[Profit]] approachs zero. | ||
Competition | The [[Zero-profit_condition]] occurs when competition is perfect. | ||
=Discussion= | |||
[[User Owned]] theory defines Competition as: Competition is inversely related to [[Profit]]. As competition increases, profit decreases and vice-versa. | |||
'''Perfect''' competition over goods would drive [[Price]] to [[Cost]] and [[Profit]] to zero and can occur when each consumer owns enough [[Physical Sources]] to produce the amount he will consume after that round of production, and before the next. | '''Perfect''' competition over goods would drive [[Price]] to [[Cost]] and [[Profit]] to zero and can occur when each consumer owns enough [[Physical Sources]] to produce the amount he will consume after that round of production, and before the next. | ||
[[User | [[User Owned]] [[Physical Sources]] maximize competition and minimize [[Rivalry]] by helping each [[Consumer]] become their own [[Vendor]], even when they do not possess the skills needed to operate those sources. | ||
[[Wage]]s are a [[Cost]] of production. | |||
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[[Category:User_Owned]] | |||
[[Category:Commons Economics]] | |||
Latest revision as of 20:54, 14 February 2017
As Competition approaches perfection, Profit approachs zero.
The Zero-profit_condition occurs when competition is perfect.
Discussion
User Owned theory defines Competition as: Competition is inversely related to Profit. As competition increases, profit decreases and vice-versa.
Perfect competition over goods would drive Price to Cost and Profit to zero and can occur when each consumer owns enough Physical Sources to produce the amount he will consume after that round of production, and before the next.
User Owned Physical Sources maximize competition and minimize Rivalry by helping each Consumer become their own Vendor, even when they do not possess the skills needed to operate those sources.
Wages are a Cost of production.