Re:Nvidia is so far ahead that all the 4090s are nerfed to h...
by Wytwwww on Wednesday December 18, 2024 @11:36AM
(#42452029)
> prices to zero economic profit is a fairly basic result
Yes and that's not necessarily a good thing in all markets. Very low profit margins can result in less innovations and would certainly discourage companies from taking risks (basically by definition)
That a competitive market drives prices to zero economic profit is a fairly basic result; no active measures besides the existence of competition are necessary for this.
> What about all other stuff?
Yes, this applies in all competitive markets. If it doesn't apply in a market, there is a constraint on competition causing it.