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Jason Crawford's avatar

Good article. One thing I've always wondered about the idea that profits would be competed away to zero is: What about competing uses for capital? If invested capital can't earn a market rate of return in some business, then won't it move elsewhere? So it seems that in the long run the floor for profit is not zero, it's whatever gives you the market ROI. Thoughts?

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Becky's avatar

Love this! I was literally just yelling about this because I need a new mattress and pillows and there are too many slightly differentiated products on the market. I wish it was as easy as econ 101 made it out to be.

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